Gladstone Capital Corporation reported its financial results for the quarter ending December 31, 2025, revealing a total investment income of $24.5 million, an increase of 11.6% from $22.0 million in the same period last year. The rise in income was primarily driven by a 12.1% increase in interest income, which reached $23.9 million, compared to $21.3 million in the prior year. However, the company experienced a significant decline in net realized gains, reporting only $1.7 million compared to $57.7 million in the previous year, leading to a net increase in net assets from operations of $5.5 million, down 79.8% from $27.0 million.
In terms of expenses, Gladstone Capital's total expenses, net of credits from the Adviser, rose to $13.2 million, a 23.4% increase from $10.7 million in the prior year. This increase was attributed to higher interest expenses, which surged by 25% to $5.9 million, and a rise in the base management fee to $3.9 million, reflecting a 10.1% increase. The company’s net investment income remained relatively stable at $11.3 million, compared to $11.2 million in the same quarter last year.
Operationally, Gladstone Capital's investment portfolio consisted of 54 companies with a total fair value of $902.9 million as of December 31, 2025, an increase from $859.1 million at the end of September 2025. The company made significant investments during the quarter, totaling $37.8 million in new portfolio companies and extending $61.3 million to existing ones. Notably, the company exited three portfolio companies, generating $52.8 million in net proceeds and principal repayments.
The company’s financial position showed total assets of $922.8 million, with net assets decreasing slightly to $477.3 million from $482.0 million in the previous quarter. The net asset value per common share also declined to $21.13 from $21.34. Looking ahead, Gladstone Capital anticipates continued focus on investing in lower middle-market companies, with a strategy aimed at achieving stable earnings and cash flow to support distributions to stockholders. The company remains committed to maintaining compliance with regulatory requirements as a business development company and regulated investment company.
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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