Gladstone Capital Reports $20.9M Net Increase in Assets, Total Investment Income Rises 16%

Gladstone Capital Corporation reported its financial results for the six months ending March 31, 2026, showing a net increase in net assets resulting from operations of $20.9 million, a decrease of 41.5% compared to $35.8 million for the same period in 2025. The company’s total investment income rose to $50.5 million, up 16% from $43.5 million in the prior year, primarily driven by an increase in interest income, which grew by 10.4% to $47.1 million. This increase was attributed to a higher average principal balance of interest-bearing investments, which rose to $783 million from $662 million year-over-year.

In terms of expenses, Gladstone Capital experienced a significant increase, with total expenses net of credits rising by 30.1% to $27.4 million, compared to $21.1 million in the previous year. This increase was largely due to higher management fees and interest expenses, with interest expense on borrowings increasing by 20.3% to $11.7 million. The company’s base management fee also rose by 13.2% to $7.9 million, reflecting an increase in average total assets subject to the fee.

Operationally, Gladstone Capital's investment portfolio consisted of 55 companies with a fair value of $906.8 million as of March 31, 2026, an increase from $859.1 million at the end of September 2025. The company made new investments totaling $71.8 million in five new portfolio companies and extended $70.9 million to existing companies during the six-month period. However, it also faced challenges, with net realized losses on investments of $1.5 million, a significant drop from the $65.4 million gain recorded in the previous year.

The company’s financial position remains stable, with total assets amounting to $925.1 million and total liabilities of $406.9 million, resulting in net assets of $482.6 million. The net asset value per common share increased slightly to $21.36 from $21.34. Looking ahead, Gladstone Capital anticipates continued focus on investing in lower middle-market companies, while managing its capital structure and maintaining compliance with regulatory requirements. The company has also declared monthly distributions of $0.15 per common share for the upcoming quarter, reflecting its commitment to returning value to shareholders.