Gladstone Investment Q1 FY2027: NAV Drops to $16.24 on Unrealized Losses, but NII Climbs to $0.40/Share
GAIN sits 30% above its 52-week low of $13.11.
Summary
Gladstone Investment's Q1 FY2027 results show NAV per share slipping to $16.24 on unrealized losses, while net investment income improved to $0.40 per share. The company upsized its credit facility and made new investments.
Key Events · Earnings and Guidance · GAIN
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NAV Per Share Declines to $16.24
Net asset value per share fell from $16.78 at March 31, 2026 to $16.24, driven by $27.8 million in net realized and unrealized losses, including a $9.0 million realized loss from the restructuring of a Home Concepts Acquisition, Inc. loan.
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Net Investment Income Rises to $0.40/Share
Net investment income increased to $15.9 million ($0.40 per share) from $9.1 million ($0.25 per share) in the prior year period, boosted by a $5.6 million success fee.
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Credit Facility Upsized to $405 Million
The revolving credit facility commitment was increased to $405 million, with $157.6 million drawn as of June 30, 2026. The 5.00% 2026 Notes were repaid at maturity for $127.9 million.
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Subsequent Investments and Portfolio Activity
After quarter-end, the company invested $56.5 million in DHE Computer Systems Acquisition, Inc. and $5.1 million in Global GRAB Technologies, Inc. Portfolio company SFEG agreed to sell a subsidiary, expected to close in Q3 or Q4 2026.
Analysis · GAIN · Unknown
A $27.8 million hit from net realized and unrealized losses—including a $9.0 million realized loss tied to a loan restructuring—pushed Gladstone Investment's net asset value per share down to $16.24 from $16.78 at March 31, 2026. On the income side, net investment income rose to $0.40 per share from $0.25 a year ago, helped by a $5.6 million success fee. The company also upsized its credit facility to $405 million and repaid $127.9 million in maturing notes. Subsequent investments totaling $61.6 million and a pending portfolio company sale point to active portfolio management.
At the time of this filing, GAIN was trading at $17.00 on NASDAQ in the Unknown sector, with a market capitalization of approximately $671.4M. The 52-week trading range was $13.11 to $17.14. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.