Gladstone Investment Corporation
- Open
- 15.38
- Day high
- 15.59
- Day low
- 15.36
- Prev close
- 15.38
- Volume
- 170K
- Mkt cap
- $624M
- P/E (TTM)
- 3.3
- EPS (TTM)
- $4.63
- P/B
- 0.9
- P/S
- 5.6
- Yield
- 6.13%
- Per share
- $0.96
- ▲Insiders net buying $15K over the last 3 months (4 open-market buys, 0 sales)
- 🏛Institutions mixed (13F)
Gladstone Investment Corporation (GAIN) is a Financial Services company listed on NASDAQ. The stock is up 9% over the past year. Over the trailing 3 months, insiders filed 4 open-market buys and 0 sales (SEC Form 4).
Gladstone Investment Corporation (GAIN) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GAIN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $0.22 | $0.20 | -9.1% | $25M | -2.4% |
| Feb 3, 2026 | $0.23 | $0.21 | -10.3% | $25M | -3.0% |
| Nov 4, 2025 | $0.24 | $0.24 | +0.0% | $36M | +39.8% |
| Aug 12, 2025 | $0.23 | $0.24 | +4.3% | $26M | +5.0% |
| Feb 12, 2025 | $0.24 | $0.23 | -4.2% | $42M | +83.9% |
| Nov 8, 2024 | $0.25 | $0.24 | -4.0% | $22M | -3.7% |
| May 8, 2024 | $0.26 | $0.24 | -7.7% | $28M | +22.5% |
| Nov 1, 2023 | $0.27 | $0.24 | -11.1% | $51M | +127.4% |
| Aug 2, 2023 | $0.27 | $0.25 | -7.4% | $12M | -41.3% |
| Feb 1, 2023 | $0.26 | $0.26 | +0.0% | $19M | -5.0% |
| Nov 1, 2022 | $0.23 | $0.29 | +26.1% | $6M | -65.9% |
| Aug 3, 2022 | $0.22 | $0.22 | +0.0% | $16M | -6.6% |
GAIN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 19, 2026 | Ritchie Taylorofficer: Chief Financial Officer | Buy | 160 | $16.15 |
| May 19, 2026 | Ritchie Taylorofficer: Chief Financial Officer | Buy | 150 | $16.29 |
| May 19, 2026 | Ritchie Taylorofficer: Chief Financial Officer | Buy | 450 | $16.50 |
| May 19, 2026 | Ritchie Taylorofficer: Chief Financial Officer | Buy | 155 | $16.10 |
| Nov 7, 2023 | Easton Rachael Z.officer: CFO and Treasurer | Buy | 650 | $14.67 |
| Aug 8, 2023 | DULLUM DAVID A Rofficer: President | Buy | 5,000 | $13.39 |
| Mar 17, 2023 | Easton Rachael Z.officer: CFO and Treasurer | Buy | 375 | $13.12 |
| Mar 15, 2023 | DULLUM DAVID A Rofficer: President | Buy | 3,000 | $12.84 |
| Feb 7, 2023 | WILKINSON WALTER Hdirector | Buy | 3,661 | $13.96 |
| Dec 16, 2022 | DULLUM DAVID A Rofficer: President | Buy | 3,000 | $13.06 |
| Aug 19, 2022 | Smith Jennifer Aofficer: Chief Valuation Officer | Buy | 100 | $15.61 |
| Jun 15, 2022 | DULLUM DAVID A Rofficer: President | Buy | 4,000 | $12.75 |
| May 20, 2022 | Easton Rachael Z.officer: CFO and Treasurer | Buy | 175 | $14.52 |
| Feb 24, 2022 | DULLUM DAVID A Rofficer: President | Buy | 2,500 | $14.69 |
| Feb 24, 2022 | DULLUM DAVID A Rofficer: President | Buy | 3,000 | $14.46 |
Source: GAIN SEC Form 4 filings, latest May 19, 2026. For informational purposes only — not investment advice.
See the full GAIN insider & 13F page →Gladstone Investment Corporation company profile
Overview
Gladstone Investment Corporation (NASDAQ:GAIN) is a business development company founded in 2005 that specializes in providing debt and equity financing to lower middle-market companies in the United States. The company operates as a publicly traded investment fund that focuses on mature, profitable businesses with revenues between $20 million and $100 million. Since its inception, Gladstone Investment has invested in 56 buyout portfolio companies totaling $1.6 billion and has successfully exited 29 companies, generating $260 million in net realized gains. The company is managed by an external advisor and maintains a conservative approach to leverage while providing regular monthly distributions to shareholders.
Business
Gladstone Investment Corporation operates as a business development company (BDC), which is a specialized type of investment fund that provides financing to small and medium-sized businesses. BDCs are regulated investment companies that must distribute at least 90% of their taxable income to shareholders and are required to invest primarily in U.S. companies. The company focuses exclusively on the lower middle market, targeting mature, profitable companies with annual revenues between $20 million and $100 million and EBITDA (earnings before interest, taxes, depreciation, and amortization) ranging from $3 million to $20 million. Unlike venture capital firms that invest in startups, Gladstone Investment specifically avoids early-stage companies and instead focuses on established businesses with proven track records. Gladstone Investment's investment strategy encompasses two primary components: 1. Debt Investments (Senior and Subordinated Debt): The company provides various forms of debt financing including senior loans, senior term loans, lines of credit, senior notes, and mezzanine loans. These debt investments typically range from $5 million to $30 million per transaction and generate regular interest income. The debt investments often include protective features such as interest rate floors around 11.5-12% to protect against declining interest rates. 2. Equity Investments: Gladstone Investment makes equity investments ranging from $10 million to $40 million, often seeking minority ownership positions but preferring to take majority stakes when possible. The company typically seeks board representation in its portfolio companies and focuses on industries such as manufacturing, consumer products, and business/consumer services. These equity investments provide potential for capital appreciation through business growth and eventual exits. The company's portfolio consists of approximately 25 operating companies across various sectors, with a total portfolio value of $979 million as of March 2025. Gladstone Investment typically holds investments for about seven years before exiting through sales, recapitalizations, initial public offerings, or third-party acquisitions.
Competitive moat
Gladstone Investment's competitive moat is relatively modest compared to companies with strong network effects or proprietary technology, but it does possess several defensive characteristics typical of established BDCs. Relationship-Based Advantages: The company has built long-term relationships with investment bankers, business brokers, and management teams over its 20-year operating history. These relationships provide deal flow and repeat business opportunities, as evidenced by significant add-on investments in existing portfolio companies ($123 million in add-ons versus $61 million in new buyouts in fiscal 2024). Operational Expertise: Gladstone Investment's management team brings operational experience to portfolio companies, often taking board seats and helping improve business performance. This hands-on approach can create value beyond just providing capital, as demonstrated by the turnaround of companies like Hobbs, which returned to profitability under new management guidance. Scale and Access to Capital: With over $1 billion in assets, the company has sufficient scale to compete for meaningful transactions while maintaining access to various funding sources including credit facilities, public debt markets, and equity raises. Regulatory Structure: As a BDC, Gladstone Investment benefits from tax advantages (no corporate-level taxation if distribution requirements are met) and regulatory restrictions that limit competition from larger financial institutions in certain deal sizes. However, the moat is not particularly strong. The BDC industry is highly competitive with numerous players targeting similar deal sizes and company profiles. Private equity firms, other BDCs, and strategic acquirers all compete for the same investment opportunities, often driving up valuations. The company's investment approach, while disciplined, is not proprietary and can be replicated by competitors. Additionally, the lower middle market has become increasingly competitive as larger firms move down-market, potentially compressing returns over time.
Risks & safety
Gladstone Investment presents a moderate margin of safety profile with both strengths and concerns in its financial structure. Overall Assessment: The company maintains adequate liquidity and conservative leverage but faces structural challenges common to BDCs, including asset-liability duration mismatches and dependence on capital markets. • Liquidity Position: Strong with $15.2 million in cash and $214 million available on credit facilities as of March 2025 • Leverage Metrics: Conservative debt-to-equity ratio of 0.91x with asset coverage ratio of 204%, well above regulatory minimums • Credit Quality: Four companies on non-accrual (7.8% of debt fair value), though three have returned to profitability • Funding Structure: Diversified with credit facilities, publicly traded notes, and equity capital; recently issued $126.5 million in notes Valuation Metrics: • Trading at 0.98x book value, suggesting market skepticism about asset valuations • Price-to-earnings ratio of 6.9x appears reasonable for a BDC • Current yield of approximately 8.5% (monthly distributions) plus supplemental distributions Key Concerns: • Current ratio of 0.045 indicates potential liquidity timing mismatches between short-term liabilities and less liquid portfolio investments • Dependence on capital markets for funding growth and refinancing debt maturities • Exposure to economic cycles affecting portfolio company performance and exit opportunities
Recent development
Over the past few years, Gladstone Investment has focused on several key strategic initiatives while navigating a challenging investment environment. Portfolio Expansion and Investment Activity: The company significantly increased its investment pace, deploying $221 million in fiscal 2025 compared to $184 million in fiscal 2024. This included investments in four new portfolio companies and substantial add-on investments in existing holdings. The strategy emphasizes building value through add-on acquisitions rather than just providing initial buyout financing. Capital Structure Optimization: Management has strengthened the balance sheet through multiple financing initiatives. The company expanded its credit facility to $270 million, issued $126.5 million in publicly traded notes, and established a $75 million At-The-Market equity program. These moves provide enhanced financial flexibility for future investments while maintaining conservative leverage ratios. Team Enhancement: Gladstone Investment added experienced talent to its investing team to support increased deal activity and portfolio management. This investment in human capital reflects management's confidence in growing deal flow and the need for additional expertise to evaluate opportunities. Distribution Strategy Evolution: While maintaining consistent monthly distributions of $0.08 per share ($0.96 annually), the company has increasingly utilized supplemental distributions to return capital gains to shareholders. In fiscal 2025, supplemental distributions totaled $1.66 per share, demonstrating the success of the exit strategy. Portfolio Management Focus: The company has worked intensively with underperforming investments, particularly companies on non-accrual status. Notable success includes the turnaround of Hobbs through new management installation and improved operational strategies, with the company returning to profitability and potentially returning to accrual status. Market Positioning: Management has positioned the company to benefit from improving M&A market conditions, with deal flow increasing after a slower period in 2023-2024. The company is actively working on multiple potential acquisitions and has expressed cautious optimism about completing 3-5 new deals in the coming year.
GAIN company profile · for informational purposes only — not investment advice.
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