Gladstone Investment

Gladstone Investment (GAIN) Q3 2026 Earnings

Reported Feb 3, 2026 at 4:19 PM ET · SEC Source

Q3 26 EPS

$0.21

MISS 7.69%

Est. $0.23

Q3 26 Revenue

$25.1M

MISS 2.42%

Est. $25.7M

vs S&P Since Q3 26

+4.2%

BEATING MARKET

GAIN +12.7% vs S&P +8.5%

Market Reaction

Did GAIN Beat Earnings? Q3 2026 Results

Gladstone Investment came up short of Wall Street expectations in fiscal Q3 2026, reporting adjusted earnings of $0.21 per share against a consensus estimate of $0.23, a miss of 7.69%, while total investment income of $25.06 million fell 2.42% below … Read more Gladstone Investment came up short of Wall Street expectations in fiscal Q3 2026, reporting adjusted earnings of $0.21 per share against a consensus estimate of $0.23, a miss of 7.69%, while total investment income of $25.06 million fell 2.42% below the $25.68 million analysts had anticipated and declined a steep 40.4% year over year. The primary culprit behind the headline softness was a $14.75 million GAAP accrual for capital gains-based incentive fees, not yet contractually due, which pushed reported expenses to $31.57 million and swung the company to a net investment loss of $0.16 per share on a GAAP basis. Beneath that accounting noise, however, the quarter carried genuine positives: unrealized appreciation of $70.23 million lifted net asset value per share to $14.95 from $13.53 sequentially, and the company continued to expand its income-generating BDC portfolio, deploying $33.10 million into new holding Rowan Energy while also refinancing debt at lower rates and maintaining its $0.08 monthly common distribution.

Key Takeaways

  • Net unrealized appreciation of $70.2 million drove significant increase in net assets from operations
  • Capital gains-based incentive fee accrual of $14.7 million swung net investment income to a loss
  • Weighted-average yield on interest-bearing investments of 12.9%
  • Increase in weighted-average principal balance of interest-bearing investment portfolio boosted interest income
  • Decrease in dividend and success fee income due to variable timing
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GAIN YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings