Gladstone Investment Corporation (GAINL) delivered a solid first quarter of 2026 with robust gross margins and a positive bottom-line, supported by strong operating income and EBITDA notwithstanding meaningful debt service and one-time items. Revenue of $23.54 million generated a gross profit of $19.64 million (gross margin 83.41%), and the company reported net income of $7.77 million ($0.2106 per share). EBITDA stood at $17.18 million, with an EBITDARatio of 0.73x and an operating income of $17.18 million, underscoring earnings quality from its asset-management and middle-market credit portfolio. However, total other income/expenses net was negative at $9.41 million, contributing to a pre-tax income of $7.77 million and a net income that reflects the impact of non-operating items.
Operating cash flow was negative at $50.18 million for the period, driven by working capital movements and a notable negative line item for other non-cash charges totaling $51.23 million. The company financed activity through $40.38 million of net financing cash inflows, resulting in a net decrease in cash of $9.80 million to end the period with $5.36 million in cash on hand. From a balance-sheet perspective, total assets were about $1.054 billion, with short-term debt of $456.36 million and equity of $485.30 million, yielding a net debt position of roughly $451.00 million and an implied leverage near 0.93x. The liquidity profile is modest (cash balance low relative to current liabilities), which is typical for a collateralized lending-portfolio vehicle but highlights ongoing financing needs and the sensitivity to debt markets.
Overall, the QQ1 2026 results reflect a resilient earnings framework supported by a high gross margin and positive net income, offset by leverage intensity and cash-flow dynamics driven by the portfolio and financing structure. Management commentary is not available in the provided transcript snapshot, which limits the inclusion of forward-looking guidance or portfolio-color from the call.