Gladstone Investment Corporation (Nasdaq: GAIN) released its financial results for the second fiscal quarter ended September 30, 2026, on November 9, 2026. The company reported a net investment income of $4.8 million, or $0.12 per weighted-average common share, a decrease from the $15.9 million, or $0.40 per share, reported in the prior quarter.
The decline was attributed to a $5.6 million reduction in success fee income and an increase in total expenses, net of credits. Total expenses rose to $19.3 million from $12.4 million in the prior quarter, largely due to an $8.0 million increase in accruals for capital gains-based incentive fees and higher interest expense related to borrowings on the Credit Facility.
Despite the decrease in net investment income, the company’s net assets increased to $654.3 million as of September 30, 2026, from $646.8 million at the end of June 2026. This increase was driven by net unrealized appreciation of $12.2 million and net investment income, partially offset by distributions paid to shareholders.
During the quarter, Gladstone made several new investments, including a $56.4 million commitment to DHE Computer Systems Acquisition, Inc., a $58.6 million investment in Extrude Hone LLC, and a $56.1 million investment in McFarlane Toys, Inc. The company also invested an additional $18.6 million in Detroit Defense, Inc., and $3.7 million in Smart Chemical Solutions, LLC.
The company paid total distributions of $0.24 per common share during the quarter, consisting of $0.08 per share in July, August, and September. Following the quarter, the Board of Directors declared monthly distributions of $0.08 per share for October, November, and December 2026.
As of September 30, 2026, the company had $421.0 million in notes payable and $299.8 million outstanding under its Credit Facility. The weighted-average yield on interest-bearing investments was 13.0%.
