Gladstone Investment Corporation (GAIN) reported its financial results for the second fiscal quarter ended September 30 2025, posting revenue of $25.3 million and an adjusted earnings per share of $0.24. The revenue figure surpassed the consensus estimate of $24.81 million, while the EPS met the $0.24 expectation, giving the company a modest beat in earnings but a clear upside in top‑line performance.
Revenue growth was driven largely by higher investment income and dividend and success‑fee income, which offset a $29.9 million realized loss stemming from the restructuring of J.R. Hobbs loans. Net investment income fell from $9.1 million in the prior quarter to $6.5 million, reflecting a weaker interest‑rate environment and a shift in the portfolio’s risk profile. The realized loss reduced GAAP earnings, but the adjusted EPS remained in line with analyst forecasts because the company’s non‑GAAP adjustments removed the one‑time hit.
The company’s net asset value per common share rose to $13.53 from $12.99, driven by $54.4 million of net unrealized appreciation. Share repurchases under the at‑market program generated $31.1 million in net proceeds, while the board declared a quarterly distribution of $0.24 per share, continuing the $0.08 monthly payout for October, November, and December.
Management did not issue forward guidance in the filing, but a conference call was scheduled for November 5 at 8:30 a.m. ET to discuss the results in more detail. Investors will be able to hear directly how the company plans to navigate the post‑restructuring environment and whether the investment‑income decline will persist.
Overall, Gladstone’s Q2 results demonstrate resilience in its investment‑income streams and a disciplined approach to capital allocation, even as a significant restructuring charge temporarily dampened GAAP earnings. The company’s NAV growth and ongoing share‑repurchase program suggest confidence in its long‑term asset‑management strategy.
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