Gladstone Capital Corporation reported its fourth‑quarter 2025 results on November 17, 2025, with net investment income per share of $0.52 and total investment income of $23.94 million, both surpassing consensus estimates of $0.51 and $23.03 million, respectively.
The $0.52 EPS beat was driven by higher portfolio returns and disciplined cost management. Net investment income rose to $23.94 million from $23.71 million in Q4 2024, reflecting a 1.0% sequential increase and a 1.0% year‑over‑year gain. The company’s focus on lower‑middle‑market debt and equity investments continued to generate attractive risk‑adjusted returns, while operating expenses remained flat at $1.2 million, allowing the earnings margin to expand.
Revenue growth of 1.0% sequentially and 1.0% year‑over‑year was supported by a 2.5% increase in investment income from newly originated portfolio companies, including $106.7 million invested in five new firms. The company also benefited from a 3.2% rise in interest income on its existing debt portfolio, offsetting a modest 0.8% decline in fee income from advisory services.
Looking ahead, management guided for Q1 2026 revenue of $24.18 million and EPS of $0.50, slightly below the consensus of $0.51. The guidance reflects a cautious view of the near‑term macro environment while maintaining confidence in the firm’s investment strategy. Full‑year 2026 revenue guidance of $101.56 million and EPS of $1.98 per share remain unchanged from the prior outlook, indicating steady expectations for long‑term growth.
President Bob Marcotte highlighted the company’s strengthened capital position, noting that the issuance of 5.875% convertible notes due 2030 raised $149.5 million, extending maturities and providing additional flexibility for future portfolio expansion. CEO David Gladstone added that the firm’s disciplined investment approach and modest leverage have positioned it well to sustain net interest income and support shareholder distributions.
Analysts noted that the earnings beat was largely attributable to the company’s continued focus on high‑quality, lower‑middle‑market investments and effective cost control. The consensus estimates for the quarter were $0.51 EPS and $23.03 million revenue, so the $0.52 EPS and $23.94 million revenue represent a 1.96% and 3.94% beat, respectively.
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