Gladstone Investment Corporation
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.69%.
Did GAIN Beat Earnings? Q4 2026 Results
Gladstone Investment Corporation closed fiscal Q4 2026 on a split note, posting total investment income of $25.19 million while reporting a GAAP loss of $0.27 per share, a result weighed down by an $18.53 million accrual for capital gains-based incentive fees required under accounting rules despite no cash obligation. The net investment loss widened to $10.61 million from $6.51 million in the prior quarter, as total expenses climbed to $35.80 million from $31.57 million. The more telling story, however, was on the balance sheet, where net unrealized appreciation of $92.82 million drove net asset value per share sharply higher to $16.78 from $14.95 sequentially and $13.55 a year ago, a 23.8% year-over-year gain. Stripping out the fee accruals, adjusted net investment income came in at $0.20 per share, broadly in line with the prior quarter's $0.21. Portfolio fair value as a percentage of cost rose to 124.4% from 115.5%, reflecting broad valuation gains across the company's 29-company investment portfolio.
- Net unrealized appreciation of $92.8 million in Q4 drove NAV per share increase from $14.95 to $16.78
- Total investment income essentially flat QoQ at $25.2 million due to increased dividend/success fee income offset by lower interest income
- Capital gains-based incentive fee accruals of $18.5 million in Q4 were the primary driver of GAAP net investment loss
- Year-over-year total investment income rose 5.8% to $99.1 million driven by $6.1 million increase in interest income from higher weighted-average principal balance
- Full-year net unrealized appreciation of $216.1 million versus depreciation of $26.0 million in prior year
GAIN YoY Financials
Figures from SEC filings and company reports. Not investment advice.