Gladstone Capital

Gladstone Capital (GLAD) Q4 2025 Earnings

Reported Nov 17, 2025 at 4:26 PM ET · SEC Source

Q4 25 EPS

$0.52

BEAT +3.11%

Est. $0.50

Q4 25 Revenue

$23.9M

BEAT +5.34%

Est. $22.7M

vs S&P Since Q4 25

-8.5%

TRAILING MARKET

GLAD +3.8% vs S&P +12.3%

Full Year 2025 Results

FY 25 EPS

$2.02

BEAT +0.57%

Est. $2.01

FY 25 Revenue

$89.1M

BEAT +1.48%

Est. $87.8M

Market Reaction

Did GLAD Beat Earnings? Q4 2025 Results

Gladstone Capital delivered a split verdict in its fiscal fourth quarter, beating on the bottom line while falling well short of revenue expectations in a period defined by yield compression and aggressive portfolio repositioning. The business develo… Read more Gladstone Capital delivered a split verdict in its fiscal fourth quarter, beating on the bottom line while falling well short of revenue expectations in a period defined by yield compression and aggressive portfolio repositioning. The business development company posted net investment income of $0.52 per share, edging past the $0.50 consensus estimate by 4.00%, but total investment income of $23.94 million trailed analyst forecasts of $30.62 million by 21.83% and slid 37.9% from the year-ago period. The primary culprit was a steady erosion in portfolio yields, with the weighted average yield compressing to 12.5% from 13.9% a year earlier, even as the interest-bearing portfolio's principal balance expanded meaningfully to $752.00 million. The quarter's most significant development, however, may prove to be a balance sheet overhaul; the company issued $149.50 million in 5.88% Convertible Notes due 2030 and subsequently redeemed higher-cost 2026 and 2028 debt, a refinancing management believes positions the firm to sustain distributions and drive continued asset growth into fiscal 2026. The Board declared $0.45 per share in common distributions for the coming quarter.

Key Takeaways

  • Increase in weighted average principal balance of interest-bearing portfolio to $752 million from $647.2 million sequentially
  • 10.5% quarter-over-quarter increase in total investment income driven by interest income growth
  • Net unrealized appreciation of $9.1 million in Q4
  • $106.7 million invested in five new portfolio companies during Q4
  • Secured first lien assets maintained above 70% of debt investments at cost
24/7 Wall St

GLAD YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“FY25 closed on a high note as our lower middle market investment focus produced over $100 million of net originations, and we reset near term maturities and increased our floating rate funding via the debt refinancing concluded shortly after 9/30. These actions combined with our modest leverage have positioned us well to deliver continued asset growth and sustain our net interest income in support of future shareholder distributions.”

— Bob Marcotte, Q4 2025 Earnings Press Release