GAING · Gladstone Investment Corporation 7.125% Notes due 2031

Gladstone Investment Corporation's Q4 FY2026 results showed a GAAP net investment loss of $10.6 million ($0.27 per share), widening from $6.5 million ($0.16 per share) in the prior quarter, primarily due to a $3.8 million increase in capital gains-based incentive fees accrued under GAAP ($18.5 million total), higher base management fees, partially offset by slightly higher investment income from dividends and success fees. Adjusted NII per share was $0.20, down 4.8% QoQ. Strong unrealized appreciation of $92.8 million drove a 25.0% increase in net assets from operations to $82.4 million ($2.07 per share). NAV per share rose 12.2% QoQ to $16.78, reflecting portfolio fair value growth to 124.4% of cost. For the full FY2026, net investment loss flipped to $3.8 million ($0.10 per share) from income of $28.1 million ($0.76 per share) YoY, driven by $38.0 million in incentive fees (vs. $7.4 million prior year), higher interest expense from new notes issuances, and base fees, despite 5.8% higher investment income from increased debt balances. Unrealized gains of $216.1 million, including reversals on restructurings, propelled net assets growth to $184.8 million ($4.77 per share), boosting NAV 23.8% YoY. Portfolio expanded to 29 companies with $173.6 million invested, though repayments slowed. Financing included $100 million 7.125% Notes due 2031 issuance, $60 million 6.875% Notes due 2028, credit facility expansion to $300 million, and $41.5 million from ATM equity sales. Monthly distributions of $0.08 per share continued, with total FY distributable earnings per share at $4.56. Total notes payable stood at $549 million at quarter-end, 95.8% fixed rate.