Gladstone Capital Corporation Reports Financial Results for Quarter Ended December 31, 2024

Gladstone Capital Corporation reported its financial results for the three months ended December 31, 2024, revealing a net increase in net assets resulting from operations of $26.975 million, a 34.9% increase compared to $20.001 million in the same period last year. The company’s net investment income for the quarter was $11.224 million, down from $11.934 million in the prior year, reflecting a decrease in interest income, which fell by 7.3% to $21.320 million. Total investment income decreased to $21.960 million from $23.221 million year-over-year, primarily due to lower interest income from non-control/non-affiliate investments.

The company’s total assets increased slightly to $815.625 million as of December 31, 2024, compared to $812.468 million at the end of the previous quarter. Notably, net assets rose to $480.316 million from $470.895 million, with the net asset value per common share increasing to $21.51 from $21.18. The number of shares outstanding as of February 10, 2025, was 22,329,852, reflecting a modest increase from the previous quarter.

In terms of operational developments, Gladstone Capital made significant investments during the quarter, totaling $107.2 million across six new portfolio companies and extending $44.5 million to existing companies. The company also exited four portfolio companies, generating $165.3 million in net proceeds and principal repayments. The investment portfolio consisted of 51 companies, with a fair value of $799.5 million, indicating a diversified approach across various sectors, including healthcare, manufacturing, and services.

The company’s financing activities included a total commitment of $293.7 million under its revolving line of credit, with $61.5 million drawn as of December 31, 2024. The effective interest rate on the credit facility increased to 19.1% from 12.7% in the prior year, reflecting rising market rates. Additionally, Gladstone Capital raised $2.5 million through the sale of its Series A Preferred Stock during the quarter, with plans to continue utilizing its shelf registration statement to issue up to $700 million in securities.

Looking ahead, Gladstone Capital remains focused on maintaining its status as a regulated investment company (RIC) and business development company (BDC), with a commitment to distributing at least 90% of its taxable income to shareholders. The company’s management expressed confidence in its investment strategy and operational resilience, despite the challenges posed by fluctuating interest rates and market conditions.