Gladstone Capital Corporation (GLAD) reported its Q2 2025 financial results with net investment income of $11.2 million ($0.50 per share). Total investment income decreased 1.8% to $21.6 million compared to Q4 2024. The company invested $45.6 million during the quarter, including $38.3 million in two new portfolio companies. Notable highlights include net realized gains of $7.7 million and a net increase in assets of $8.8 million ($0.39 per share). The weighted average yield decreased to 12.6% from 13.1%, while secured first lien assets maintained over 70% of debt investments. The company declared a quarterly dividend of $0.495 per common share and completed significant portfolio activities, including a $42.2 million debt investment payoff in SpaceCo Holdings and restructuring of Eegees investment.
Gladstone Capital Corporation (GLAD) ha comunicato i risultati finanziari del secondo trimestre 2025 con un reddito netto da investimenti di 11,2 milioni di dollari (0,50 dollari per azione). Il reddito totale da investimenti 猫 diminuito dell'1,8%, attestandosi a 21,6 milioni di dollari rispetto al quarto trimestre 2024. Durante il trimestre, la societ脿 ha investito 45,6 milioni di dollari, di cui 38,3 milioni in due nuove societ脿 del portafoglio. Tra i punti salienti si segnalano guadagni netti realizzati per 7,7 milioni di dollari e un aumento netto degli asset di 8,8 milioni di dollari (0,39 dollari per azione). Il rendimento medio ponderato 猫 sceso al 12,6% dal 13,1%, mentre gli asset garantiti da primo pegno hanno mantenuto oltre il 70% degli investimenti in debito. La societ脿 ha dichiarato un dividendo trimestrale di 0,495 dollari per azione ordinaria e ha completato importanti attivit脿 di portafoglio, inclusa l'estinzione di un investimento in debito da 42,2 milioni di dollari in SpaceCo Holdings e la ristrutturazione dell'investimento in Eegees.
Gladstone Capital Corporation (GLAD) report贸 sus resultados financieros del segundo trimestre de 2025 con un ingreso neto por inversiones de 11,2 millones de d贸lares (0,50 d贸lares por acci贸n). El ingreso total por inversiones disminuy贸 un 1,8% hasta 21,6 millones de d贸lares en comparaci贸n con el cuarto trimestre de 2024. La compa帽铆a invirti贸 45,6 millones de d贸lares durante el trimestre, incluyendo 38,3 millones en dos nuevas empresas de su cartera. Entre los aspectos destacados se incluyen ganancias netas realizadas de 7,7 millones de d贸lares y un aumento neto de activos de 8,8 millones de d贸lares (0,39 d贸lares por acci贸n). El rendimiento promedio ponderado disminuy贸 a 12,6% desde 13,1%, mientras que los activos garantizados con primer gravamen mantuvieron m谩s del 70% de las inversiones en deuda. La empresa declar贸 un dividendo trimestral de 0,495 d贸lares por acci贸n com煤n y complet贸 importantes actividades de cartera, incluyendo el pago de una inversi贸n en deuda de 42,2 millones de d贸lares en SpaceCo Holdings y la reestructuraci贸n de la inversi贸n en Eegees.
Gladstone Capital Corporation (GLAD) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025 avec un revenu net d'investissement de 11,2 millions de dollars (0,50 dollar par action). Le revenu total d'investissement a diminu茅 de 1,8 % pour atteindre 21,6 millions de dollars par rapport au quatri猫me trimestre 2024. La soci茅t茅 a investi 45,6 millions de dollars au cours du trimestre, dont 38,3 millions dans deux nouvelles entreprises du portefeuille. Parmi les points forts, on compte des gains nets r茅alis茅s de 7,7 millions de dollars et une augmentation nette des actifs de 8,8 millions de dollars (0,39 dollar par action). Le rendement moyen pond茅r茅 a diminu茅 脿 12,6 % contre 13,1 %, tandis que les actifs garantis en premier rang repr茅sentaient plus de 70 % des investissements en dette. La soci茅t茅 a d茅clar茅 un dividende trimestriel de 0,495 dollar par action ordinaire et a men茅 脿 bien d'importantes op茅rations de portefeuille, notamment le remboursement d'un investissement en dette de 42,2 millions de dollars dans SpaceCo Holdings et la restructuration de l'investissement dans Eegees.
Gladstone Capital Corporation (GLAD) meldete seine Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Nettoanlageertrag von 11,2 Millionen US-Dollar (0,50 US-Dollar je Aktie). Das gesamte Anlageergebnis sank im Vergleich zum vierten Quartal 2024 um 1,8 % auf 21,6 Millionen US-Dollar. Das Unternehmen investierte im Quartal 45,6 Millionen US-Dollar, darunter 38,3 Millionen US-Dollar in zwei neue Portfoliounternehmen. Zu den bemerkenswerten Highlights geh枚ren realisierte Nettogewinne von 7,7 Millionen US-Dollar und eine Nettoverm枚genssteigerung von 8,8 Millionen US-Dollar (0,39 US-Dollar je Aktie). Die gewichtete Durchschnittsrendite sank von 13,1 % auf 12,6 %, w盲hrend besicherte erstklassige Verm枚genswerte 眉ber 70 % der Schuldeninvestitionen ausmachten. Das Unternehmen erkl盲rte eine viertelj盲hrliche Dividende von 0,495 US-Dollar je Stammaktie und schloss bedeutende Portfolioaktivit盲ten ab, darunter die R眉ckzahlung einer Schuldeninvestition in H枚he von 42,2 Millionen US-Dollar bei SpaceCo Holdings und die Restrukturierung der Eegees-Investition.
Positive
Net realized gains of $7.7 million from successful exits
Maintained strong secured first lien assets position at over 70% of debt investments
Stable net investment income at $0.50 per share
Strong balance sheet with ample funding capacity for future growth
Negative
Total investment income decreased by 1.8% quarter-over-quarter
Weighted average yield declined to 12.6% from 13.1%
Net asset value per share decreased by 0.5% to $21.41
Net increase in assets decreased 67.4% to $8.8 million compared to previous quarter
Insights
Gladstone maintains $0.50/share NII despite slight income decline; portfolio contraction and credit restructuring suggest cautious outlook despite stable core earnings.
Gladstone Capital's Q2 results demonstrate stable core earnings with net investment income holding at $0.50 per share, despite a 1.8% decline in total investment income to $21.6 million. This stability was achieved through effective expense management, with total expenses decreasing 3.8%.
The portfolio metrics reveal several noteworthy trends. The weighted average yield decreased to 12.6% from 13.1% in the previous quarter, primarily reflecting lower SOFR rates (averaging 4.3% vs. 4.7%). More concerning is the 1.4% decline in portfolio fair value as a percentage of cost (from 98.0% to 96.6%), indicating some deterioration in credit quality or valuation.
The $9.96 million in unrealized depreciation partially offset the $7.7 million in realized gains, resulting in a 67.4% decrease in net assets from operations quarter-over-quarter. The $35.7 million net portfolio contraction (repayments of $81.3 million exceeding new investments of $45.6 million) signals either deployment caution or challenges finding attractive opportunities.
The substantial 44.4% quarterly distribution decrease from $0.90 to $0.50 is notable, though the declared $0.495 for the upcoming quarter suggests this represents a new baseline rather than continuing deterioration.
Post-quarter events provide mixed signals: the full repayment of a $42.2 million SpaceCo investment is positive, while the Eegees bankruptcy restructuring into a new $20.5 million investment demonstrates ongoing credit challenges requiring active management.
MCLEAN, VA / / May 6, 2025 / (Nasdaq:GLAD) (the "Company") today announced earnings for its second quarter ended March 31, 2025. Please read the Company's Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at and the Investors section of the Company's website at .
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended:
March 31, 2025
December 31, 2024
Change
% Change
Total investment income
$
21,569
$
21,960
$
(391
)
(1.8
)%
Total expenses, net of credits
(10,324
)
(10,736
)
412
(3.8
)
Net investment income
11,245
11,224
21
0.2
Net investment income per common share
0.50
0.50
0.00
0.0
Cash distribution per common share
0.50
0.90
(0.40
)
(44.4
)
Net realized gain (loss)
7,706
57,814
(50,108
)
(86.7
)
Net unrealized appreciation (depreciation)
(9,963
)
(41,892
)
31,929
(76.2
)
Net increase (decrease) in net assets resulting from operations
8,797
26,975
(18,178
)
(67.4
)
Weighted average yield on interest-bearing investments
12.6
%
13.1
%
(0.5
)%
(3.8
)
Total invested
$
45,595
$
151,616
$
(106,021
)
(69.9
)
Total repayments and net proceeds
81,274
165,343
(84,069
)
(50.8
)
As of:
March 31, 2025
December 31, 2024
Change
% Change
Total investments, at fair value
$
762,636
$
799,497
$
(36,861
)
(4.6
)%
Fair value, as a percent of cost
96.6
%
98.0
%
(1.4
)%
(1.4
)
Net asset value per common share
$
21.41
$
21.51
$
(0.10
)
(0.5
)
Second Fiscal Quarter 2025 Highlights:
Portfolio Activity: Invested $38.3 million in two new portfolio companies and $7.3 million in existing portfolio companies.
AG真人官方ized Gains: Delivered net realized gains of $7.7 million for the quarter derived from successful exits.
Portfolio Mix: Secured first lien assets continue to be over 70% of our debt investments, at cost.
Second Fiscal Quarter 2025 Results:
Total investment income decreased by $0.4 million, or 1.8%, for the quarter ended March 31, 2025, compared to the prior quarter ended December 31, 2024, driven primarily by a $0.4 million decrease in prepayment fees received. Interest income was unchanged, quarter over quarter. The weighted average yield decreased to 12.6% during the quarter ended March 31, 2025 as compared to 13.1% during the quarter ended December 31, 2024. SOFR rates averaged 4.3% during the quarter ended March 31, 2025, a decline compared to an average of 4.7% during the quarter ended December 31, 2024. The reduced SOFR rates were offset by an increase in the weighted average principal balance of our interest-bearing investment to $682.6 million during the quarter ended March 31, 2025 as compared to $642.4 million during the quarter ended December 31, 2024.
Total expenses decreased by $0.4 million, or 3.8%, quarter over quarter primarily due to a $1.4 million incentive fee credit which was largely offset by a $1.3 million increase in the net base management fee due to lower investment banking fee credits to the base management fee from lower deal originations and $0.5 million in lower professional fees and other expenses.
Net investment income for the quarter ended March 31, 2025 was $11.2 million, or $0.50 per share.
The net increase in net assets resulting from operations was $8.8 million, or $0.39 per share, for the quarter ended March 31, 2025, compared to $27.0 million, or $1.21 per share, for the quarter ended December 31, 2024. The current quarter increase in net assets resulting from operations was primarily driven by $7.7 million of net realized gain recognized during the quarter.
Subsequent Events: Subsequent to March 31, 2025, the following significant events occurred:
Portfolio Activity:
In April 2025, our $42.2 million debt investment in SpaceCo Holdings, LLC paid off at par.
In April 2025, our investment in Eegees, LLC was restructured as part of the bankruptcy process resulting in a new $20.5 million investment in Eegee Acquisition Corporation comprised of secured first lien debt and common equity.
Distributions and Dividends Declared:
In April 2025, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date
Payment Date
Distribution per Common Share
April 21, 2025
April 30, 2025
$
0.165
May 21, 2025
May 30, 2025
0.165
June 20, 2025
June 30, 2025
0.165
Total for the Quarter
$
0.495
Record Date
Payment Date
Distribution per Series A Preferred Stock
April 25, 2025
May 5, 2025
$
0.130208
May 27, 2025
June 5, 2025
0.130208
June 25, 2025
July 3, 2025
0.130208
Total for the Quarter
$
0.390624
Comments from Gladstone Capital's President, Bob Marcotte: "Over the past two quarters we believe we have absorbed much of the anticipated surge in portfolio liquidity events and ended last quarter with a strong balance sheet, ample funding capacity and a healthy backlog of deals to grow the company's investment portfolio and support shareholder distributions in the coming quarters."
Conference Call for Stockholders: The Company will hold its earnings release conference call on Wednesday, May 7, 2025, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 14, 2025. To hear the replay, please dial (877) 660-6853 and use playback conference number 13752152. The replay of the conference call will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at . The event will be archived and available for replay on the investors section of the Company's website.
About Gladstone Capital Corporation: is a publicly-traded business development company that invests in debt and equity securities, consisting primarily of secured first and second lien term loans to lower middle market businesses in the United States. Information on the business activities of Gladstone Capital and the other publicly-traded Gladstone funds can be found at .
To obtain a paper copy of the Company's most recent Form 10-Q, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-Q for the quarter ended March 31, 2025, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit or (703) 287-5893.
Forward-looking Statements:
The statements in this press release about future growth and shareholder returns are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on our current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in our filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
SOURCE: Gladstone Capital Corporation
View the original on ACCESS Newswire
FAQ
What was GLAD's net investment income per share for Q2 2025?
Gladstone Capital reported net investment income of $0.50 per share for Q2 2025, remaining stable compared to the previous quarter.
How much did Gladstone Capital (GLAD) invest in new portfolio companies in Q2 2025?
GLAD invested $38.3 million in two new portfolio companies and $7.3 million in existing portfolio companies, totaling $45.6 million in investments for Q2 2025.
What is GLAD's dividend distribution for Q2 2025?
GLAD declared monthly distributions totaling $0.495 per common share for Q2 2025, paid in three installments of $0.165 each from April to June 2025.
What was Gladstone Capital's (GLAD) net asset value per share as of March 31, 2025?
GLAD's net asset value per share was $21.41 as of March 31, 2025, representing a slight decrease of $0.10 from December 31, 2024.
What percentage of GLAD's debt investments are secured first lien assets?
Over 70% of Gladstone Capital's debt investments consist of secured first lien assets, at cost.
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