Companies /Financial Services

Gladstone Capital Corp

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

Q1 2026 Earnings

Reported Feb 4, 2026, 4:36pm ET · SEC source
$0.50
Beat +3.46%
EPS · est. $0.48
$24.5M
Miss −0.80%
Revenue · est. $24.7M
−6.2%
Trailing market
GLAD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−4%−2%0Feb 4Feb 5report 4:36pm ETearnings−1.5%−5.7%
−6%−4%−2%0Feb 4Feb 5earnings−1.5%−5.7%
GLAD −5.7%S&P 500 −1.5%
−6%−4%−2%0Feb 4Feb 5report 4:36pm ETearnings−1.8%−5.7%
−6%−4%−2%0Feb 4Feb 5earnings−1.8%−5.7%
GLAD −5.7%NASDAQ −1.8%
−8%−4%0Feb 3Feb 12report 4:36pm ETearnings−0.7%−8.1%
−8%−4%0Feb 3Feb 12earnings−0.7%−8.1%
GLAD −8.1%S&P 500 −0.7%
−8%−4%0Feb 3Feb 12report 4:36pm ETearnings−0.8%−8.1%
−8%−4%0Feb 3Feb 12earnings−0.8%−8.1%
GLAD −8.1%NASDAQ −0.8%
−5.68%
Day of report
−1.35%
Next session
−2.59%
One week
−6.22%
30 days

S&P 500 over the same 30 days: −0.06%.

Did GLAD Beat Earnings? Q1 2026 Results

Gladstone Capital delivered a largely in-line fiscal first quarter for 2026, posting net investment income of $0.50 per share on total investment income of $24.51 million, though a sharp swing in unrealized depreciation dimmed the headline results. The business development company's top line grew 2.4% sequentially, lifted by a growing interest-bearing portfolio whose weighted average principal balance climbed to $772.30 million, but a compression in weighted average yield to 12.2% from 12.5% as SOFR declined kept gains in check. Expenses rose 6.0% to $13.25 million, pressured by a higher net base management fee, while $5.64 million in net unrealized depreciation pulled the net increase in net assets from operations down to just $5.45 million, or $0.24 per share, from $13.97 million the prior quarter. Net asset value per share slipped to $21.13, prompting at least one Wall Street firm to cut its price target and move to the sidelines citing a lack of near-term catalysts. Management nonetheless expressed confidence that dividend coverage remains sustainable, pointing to a healthy investment backlog and maintained discipline in its core lower middle market lending strategy heading into the remainder of 2026.

Key Takeaways
  • Increase in weighted average principal balance of interest-bearing investments to $772.3 million from $752.0 million
  • Growth in other income from prepayment fees and success fees
  • Secured first lien assets continue to represent over 70% of debt investments at cost
  • Weighted average yield on interest-bearing investments of 12.2%

“We closed out 2025 with a healthy increase in earning assets and were able to sustain our net interest income, lending spreads and dividend coverage despite the decline in short term interest rates. We expect this trend to continue into 2026 as we work through a healthy backlog of pending investments and maintain our return and financing discipline within our core lower middle market investing focus.”

Gladstone Capital CEO, on the earnings call

Forward Guidance & Outlook

Management expects the trend of sustained net interest income, lending spreads, and dividend coverage to continue into 2026, supported by a healthy backlog of pending investments and maintained return and financing discipline within the company's core lower middle market investing focus.

GLAD YoY Financials

Revenue$24.5M
Net Income$11.3M

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