Q2 25 EPS
$0.50
MISS 1.57%
Est. $0.51
Q2 25 Revenue
$21.6M
MISS 6.09%
Est. $23.0M
vs S&P Since Q2 25
-49.9%
TRAILING MARKET
GLAD -17.9% vs S&P +32.1%
Market Reaction
Did GLAD Beat Earnings? Q2 2025 Results
Gladstone Capital fell short on both the top and bottom lines in its fiscal second quarter ended March 31, 2025, as softer deal origination activity and portfolio runoff weighed on results. The business development company posted earnings of $0.50 pe… Read more Gladstone Capital fell short on both the top and bottom lines in its fiscal second quarter ended March 31, 2025, as softer deal origination activity and portfolio runoff weighed on results. The business development company posted earnings of $0.50 per share, missing the $0.51 consensus estimate by 1.57%, while total investment income of $21.57 million trailed the $22.97 million analyst expectation by 6.09% and represented a steep 29.9% decline from the year-ago period. The primary culprit was a sharp pullback in new investment activity, with only $45.59 million deployed during the quarter compared to $151.62 million in the prior period, as $81.27 million in repayments shrank the portfolio's fair value to $762.64 million. Net unrealized depreciation of $9.96 million further pressured overall returns. Looking ahead, President Bob Marcotte indicated the company has largely absorbed the anticipated surge in liquidity events, citing a healthy deal backlog, ample funding capacity, and a strong balance sheet as foundations for portfolio growth and continued shareholder distributions in coming quarters.
Key Takeaways
- • Decrease in prepayment fees received reduced total investment income by $0.4 million sequentially
- • SOFR rate decline to 4.3% average from 4.7% offset by higher weighted average principal balance of interest-bearing investments ($682.6M vs $642.4M)
- • Net realized gains of $7.7 million from successful exits
- • Net unrealized depreciation of $9.96 million weighed on net increase in net assets
- • Incentive fee credit of $1.4 million reduced total expenses
- • Weighted average yield compressed to 12.6% from 13.1%
GLAD YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
“Over the past two quarters we believe we have absorbed much of the anticipated surge in portfolio liquidity events and ended last quarter with a strong balance sheet, ample funding capacity and a healthy backlog of deals to grow the company's investment portfolio and support shareholder distributions in the coming quarters.”
— Bob Marcotte, Q2 2025 Earnings Press Release
GLAD Earnings Trends
GLAD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
GLAD EPS Trend
Earnings per share: estimate vs actual
GLAD Revenue Trend
Quarterly revenue: estimate vs actual
GLAD Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.48 | $0.52 | +8.33% | $26.0M | +3.56% |
| Q1 26 BEAT | $0.48 | $0.50 | +3.46% | $24.5M | -0.80% |
| Q4 25 BEAT FY | $0.50 | $0.52 | +3.11% | $23.9M | +5.34% |
| FY Full Year | $2.01 | $2.02 | +0.57% | $89.1M | +1.48% |
| Q3 25 BEAT | $0.50 | $0.50 | +0.00% | $21.7M | -1.08% |
| Q2 25 MISS | $0.51 | $0.50 | -1.57% | $21.6M | -6.09% |