Companies /Financial Services

Gladstone Capital Corp

NASDAQ: GLAD Asset Management
$19.74
▼ $0.10 (−0.50%) today
Markets closed · 9:40pm ET

Q2 2025 Earnings

Reported May 6, 2025, 4:24pm ET · SEC source
$0.50
Miss −1.57%
EPS · est. $0.51
$21.6M
Miss −6.09%
Revenue · est. $23.0M
−0.4%
Trailing market
GLAD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−1.6%−0.8%0+0.8%May 6May 7report 4:24pm ETearnings+0.4%+0.2%
−1.6%−0.8%0+0.8%May 6May 7earnings+0.4%+0.2%
GLAD +0.2%S&P 500 +0.4%
−1.6%−0.8%0+0.8%May 6May 7report 4:24pm ETearnings+0.3%+0.2%
−1.6%−0.8%0+0.8%May 6May 7earnings+0.3%+0.2%
GLAD +0.2%NASDAQ +0.3%
0+3%+6%May 5May 14report 4:24pm ETearnings+5.1%+4.8%
0+3%+6%May 5May 14earnings+5.1%+4.8%
GLAD +4.8%S&P 500 +5.1%
0+3%+6%May 5May 14report 4:24pm ETearnings+7.7%+4.8%
0+3%+6%May 5May 14earnings+7.7%+4.8%
GLAD +4.8%NASDAQ +7.7%
−0.24%
Day of report
−1.07%
Next session
+4.68%
One week
+6.51%
30 days

S&P 500 over the same 30 days: +6.87%.

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 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%

“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.”

Gladstone Capital CEO, on the earnings call

Forward Guidance & Outlook

President Bob Marcotte indicated the company has largely absorbed the anticipated surge in portfolio liquidity events over the past two quarters and ended the period with a strong balance sheet, ample funding capacity, and a healthy backlog of deals to grow the investment portfolio and support shareholder distributions in coming quarters.

GLAD YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$9.0M$18.0M$27.0M$30.8M$21.6MRevenue$23.6M$11.2MNet Income
$0$9.0M$18.0M$27.0MRevenueNet Income

Figures from SEC filings and company reports. Not investment advice.