Gladstone Capital Corp
NASDAQ:GLAD
Gladstone Capital Corp
Gladstone Capital is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies, that meet certain criteria. The company is headquartered in Mc Lean, Virginia and currently employs 69 full-time employees. The company went IPO on 2001-08-23. The objectives of the Company are to achieve and grow current income by investing in debt securities of established lower middle market businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time; to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The company focuses on investing in lower middle market companies. Its investment portfolio consists of debt investments and equity investments. The firm's investment adviser is Gladstone Management Corporation.
Gladstone Capital is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies, that meet certain criteria. The company is headquartered in Mc Lean, Virginia and currently employs 69 full-time employees. The company went IPO on 2001-08-23. The objectives of the Company are to achieve and grow current income by investing in debt securities of established lower middle market businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time; to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The company focuses on investing in lower middle market companies. Its investment portfolio consists of debt investments and equity investments. The firm's investment adviser is Gladstone Management Corporation.
Strong Originations: Gladstone Capital reported $126.6 million in new fundings for the quarter, with net originations of $103.1 million.
Investment Income: Interest income jumped 14% to $23.8 million, driven by a 16.2% rise in average earning assets.
Portfolio Yield: Weighted average portfolio yield declined 30 basis points to 12.5%, mainly due to lower base rates.
Dividend Adjustment: Quarterly dividend was set at $0.45 per share, with management citing a proactive approach given declining rates.
Credit and Asset Quality: No new nonaccrual loans this quarter, and portfolio credit quality remains stable, with only a small portion on nonaccrual.
Refinancing Activities: The company refinanced upcoming debt maturities and increased floating rate borrowings to align with projected rate declines.
Positive Outlook: Management expects continued portfolio growth in 2026, supported by expanded PE sponsor relationships and a robust deal pipeline.
