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Gladstone Investment Q2 investment income falls on lower success fees

By Reuters News


Overview

  • U.S. business development company's Q2 total investment income fell 15% from prior quarter

  • Adjusted net investment income per share dropped 31% from previous quarter

  • Net asset value per share rose slightly, driven by unrealized investment appreciation


Outlook

  • Company declares monthly distribution of $0.08 per share for October, November, December 2026

  • Company expects proceeds from SFEG equity investment to be distributed in Q3 or Q4 fiscal 2027

  • Gladstone Investment invested $56.1 mln in McFarlane Toys after quarter-end


Result Drivers

  • SUCCESS FEE INCOME - Total investment income fell 15% sequentially, mainly due to a $5.6 mln decrease in variable success fee income

  • INCENTIVE FEES & INTEREST EXPENSE - Higher capital gains-based incentive fee accruals and increased interest expense from more borrowings raised total expenses

  • UNREALIZED APPRECIATION - Net asset value per share rose due to unrealized investment appreciation


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Asset Value Per Share

$16.43


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the closed end funds peer group is "buy"

  • Wall Street's median 12-month price target for Gladstone Investment Corp is $17.00, about 14.4% above its November 6 closing price of $14.86

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Nov 9 - WhiteHorse Finance Q3 investment income rises 3%, declares distributions

  • Nov 9 - KKR profit hits record as asset sales, fees surge

  • Nov 9 - Affiliated Managers Group posts record AUM


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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