NASDAQ$GLAD

Gladstone Capital Corp · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Gladstone Capital Corporation reported a decrease in total investment income and net investment income, but a significant increase in net realized gain on investments for the three months ended December 31, 2024.

Gladstone Capital Corporation experienced a decrease in total investment income and net investment income for the three months ended December 31, 2024, compared to the same period in the prior year. However, the company saw a substantial increase in net realized gain on investments, leading to a higher net increase in net assets resulting from operations.

  • Total investment income decreased by 5.4% to $21,960,000 for the three months ended December 31, 2024, from $23,221,000 in the prior year.
  • Net investment income decreased by 5.9% to $11,224,000 for the three months ended December 31, 2024, from $11,934,000 in the prior year.
  • Net realized gain on investments significantly increased to $57,724,000 for the three months ended December 31, 2024, from $259,000 in the prior year.
  • Net increase in net assets resulting from operations increased by 34.9% to $26,975,000 for the three months ended December 31, 2024, from $20,001,000 in the prior year.

Headline financials

Total Revenue

$22M

Previous: -$5.03M+536.4%
EPS (adj)

$1.21

Previous: $0.27+348.1%
Capital Expenditures

$0.00

Previous: $0.00
Free Cash Flow

$11.1M

Previous: $20M-44.3%
Net Income

$11.2M

Previous: $20M-43.9%
Operating Income

$11.2M

Previous: -$12.4M+190.2%

Revenue & EPS history

Gladstone Capital · Revenue · Quarterly

$22M

Q1 2025-536.4%vs Q1 2024
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Forward guidance

The company anticipates continued investment in debt and equity securities of established private businesses, with a focus on generating current income and long-term capital appreciation. They expect to maintain their RIC qualification and manage their capital structure effectively.

Tailwinds

  • Ability to issue and sell common stock under the 2024 ATM Program, with a remaining capacity of $136.5 million.
  • Continued qualification as a Regulated Investment Company (RIC) for federal income tax purposes.
  • Maintenance of asset coverage requirements for senior securities, exceeding the minimum 150% threshold.
  • Flexibility to increase the size of the Credit Facility to $350.0 million with an 'accordion' feature.
  • Ongoing efforts to invest in lower middle market companies that provide stable earnings and cash flow.

Headwinds

  • Potential for market conditions to affect the trading price of capital stock, inhibiting future equity financing.
  • Constraints on issuing equity if common stock trades below net asset value per share without stockholder and independent director approval.
  • Dependence on the Credit Facility for capital needs, subject to various constraints and covenants.
  • Uncertainty regarding the timing and terms of future equity issuances.
  • Potential for fair value measurements to fluctuate and differ materially from values ultimately realized upon disposal of securities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+8.4%

Q2 2022

Best reaction

-15.6%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+2.2%
Q1 2026+2.1%-5.6%-9.3%
Q4 2025+5.8%+8.2%+11.0%
Q2 2025-0.2%+2.4%+6.5%
Q1 2025+0.5%+4.0%-4.1%
Q4 2024+0.5%+4.4%+9.7%
Q3 2024-0.5%-0.4%-0.6%
Q2 2024-0.8%+1.4%+4.6%
Q1 2024-6.1%-4.4%-2.9%
Q4 2023+1.8%+0.1%+5.6%
Q3 2023+2.6%+3.4%-6.4%
Q2 2023-1.5%-0.9%-0.9%
Q1 2023+3.8%+1.7%-4.1%
Q4 2022+4.8%+3.2%-2.2%
Q3 2022-2.6%-2.0%-6.8%
Q2 2022+8.4%+5.7%+0.3%
Q1 2022+2.1%+3.6%-2.0%
Q4 2021+4.6%+1.2%-3.7%
Q3 2021-0.2%+2.8%+1.7%
Q2 2021-0.8%-0.5%+5.4%
Q1 2021+3.5%+6.6%+4.4%
Q4 2020+6.7%+8.2%+10.8%
Q3 2020+1.9%+1.1%+5.4%
Q2 2020-12.3%-3.4%+11.8%
Q1 2020-0.1%+1.2%-13.6%
Q4 2019+3.0%+2.4%+2.6%
Q3 2019-1.8%-0.9%+0.0%
Q2 2019-1.5%-0.1%-5.3%
Q1 2019+1.2%-1.4%+1.8%
Q4 2018-1.8%-4.0%-9.8%
Q3 2018+1.3%+1.7%+4.4%
Q2 2018+0.5%+1.4%+4.4%
Q1 2018-7.5%-0.4%-2.3%
Q4 2017+0.2%+0.2%-5.0%
Q3 2017-0.6%-0.3%-7.3%
Q2 2017-0.6%+2.0%-0.2%
Q1 2017-0.9%-4.5%-9.6%
Q4 2016+0.4%+2.6%+16.5%
Q3 2016+1.1%+3.6%+8.1%
Q2 2016-3.1%
Q1 2016-5.8%
Q4 2015+1.0%
Q3 2015+3.0%
Q2 2015-6.5%
Q1 2015+2.8%
Q4 2014+0.3%
Q3 2014-10.2%
Q2 2014-2.4%
Q1 2014-1.6%
Q4 2013+1.4%
Q3 2013-0.5%
Q2 2013-5.2%
Q1 2013-0.4%
Q4 2012-10.7%
Q3 2012-1.5%
Q2 2012-0.1%
Q1 2012+3.7%
Q4 2011-0.5%
Q3 2011-3.3%
Q2 2011-0.4%
Q1 2010+4.6%
Q4 2010-5.1%
Q3 2010-3.2%
Q2 2010-15.6%

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