Gladstone Capital Stock Earnings Reports

Gladstone Capital reported a solid quarter ended 12/31/2025 with net originations of $46.3 million, interest income of $23.9 million, and net investment income of $11.3 million ($0.50/share). Fundings were $99.1 million (including two new sponsor-backed investments), while exits/prepayments were $52.8 million. The weighted average yield on the portfolio was 12.2%. Unrealized losses were $5.3 million, concentrated in three positions (two undergoing management changes or impacted by a government shutdown). PIK accruals increased to $2.3 million for the quarter but some PIK was collected. Portfolio cost basis was $903 million in investments; total assets were $923 million. Liabilities rose to $445 million; net assets fell to $477 million and NAV declined from $21.34 to $21.13. Gross leverage was ~93% of net assets. The company increased use of its revolver to better match floating-rate sensitivity and lowered commitment fees; available borrowing capacity remains >$150 million of a $365 million facility. Monthly common distributions for February and March are $0.15 per share (annualized $1.80 — ~8.8% yield at the recent share price). Management said the late-stage pipeline is robust (> $100 million), expects near-term deal activity to more than offset recent prepayments, and believes it has levers (line usage, fee savings, portfolio coverage) to absorb initial rate declines while supporting the dividend.