**Gladstone Capital Corporation Reports Fiscal Year 2025 Results**
Gladstone Capital Corporation (GLAD) reported its financial results for the fiscal year ended September 30, 2025, showcasing a net increase in net assets resulting from operations of $57.2 million, compared to $94.5 million in the prior fiscal year. Total investment income amounted to $89.1 million, a decrease from $96.6 million in fiscal year 2024. This decrease in investment income was primarily driven by a $6.0 million decrease in interest income, which was partially offset by a $1.5 million decrease in other income. The company's net investment income was $45.2 million, slightly lower than the $46.1 million reported in the previous fiscal year.
The company's expenses, net of credits from the Adviser, totaled $43.9 million, a decrease from $50.6 million in the prior year. This decrease was primarily due to a $3.1 million decrease in the net incentive fee, a $2.4 million decrease in the net base management fee, and a $1.7 million decrease in interest expense. The company's net realized gain on investments was $55.4 million, a significant increase from $2.0 million in the prior year, primarily due to a $59.3 million realized gain recognized on the sale of our investment in Antenna Research Associates, Inc. However, the company also recorded net unrealized depreciation of investments of $42.7 million, compared to net unrealized appreciation of $42.7 million in the prior year.
Operationally, Gladstone Capital invested $310.7 million in 15 new portfolio companies and extended $86.1 million in investments to existing portfolio companies during the fiscal year. The company also received $352.3 million in combined net proceeds and principal repayments from portfolio company exits and principal repayments by existing portfolio companies. As of September 30, 2025, the investment portfolio consisted of investments in 55 companies with an aggregate fair value of $859.1 million. The company's investment portfolio was made up of approximately 90.9% debt investments and 9.1% equity investments, at cost.
Looking ahead, Gladstone Capital Corporation will continue to focus on its investment objectives of achieving and growing current income and providing stockholders with long-term capital appreciation. The company's strategy involves investing in debt and equity securities of established lower middle market companies in the United States. The company's ability to execute its strategy and achieve its objectives is subject to various risks, including market conditions, interest rate fluctuations, and the performance of its portfolio companies.
About GLADSTONE CAPITAL CORP
Gladstone Capital Corporation is a Maryland-based business development company (BDC) that invests in debt and equity securities of established U.S. private companies. Its focus is on lower middle-market firms, providing debt financing, including secured first and second lien loans, and equity investments. The company aims to generate current income and long-term capital appreciation through disciplined, long-term investments in diverse industries across the U.S.
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