Executive Summary
Gladstone Investment Corporation delivered a robust quarterly cash generation profile in QQ4 2025, with operating cash flow of $115.1 million and a substantial EBITDA of $17.87 million on revenue of $25.74 million. The company maintained a very high reported operating margin (≈69.4%) and gross margin (≈65.1%), reflecting a premium cash‑flow profile for its asset-management and private-debt portfolio. Net income of $17.87 million translated into an unusual EPS figure of -$1.29 per share, suggesting potential non‑GAAP adjustments or share-count effects that warrant closer reconciliation; the company’s ROE stood at approximately 3.6% based on year‑end equity of $499.1 million. QoQ revenue declined about 38.8%, while YoY revenue surged roughly 186%, underscoring a mix shift or one‑offs that boosted the prior-year base. Free cash flow matched operating cash flow at $115.1 million, highlighting strong cash generation capabilities even as the balance sheet reflects meaningful long‑term leverage (long‑term debt of $455.7 million; total debt of $455.7 million) and a conservative liquidity profile.
Key Performance Indicators
QoQ: -38.81% | YoY:186.04%
QoQ: -53.04% | YoY:1 412.37%
QoQ: -53.56% | YoY:-39.83%
QoQ: -53.56% | YoY:-20.86%
QoQ: -222.86% | YoY:-304.76%
Key Insights
Revenue: $25.741 million (YoY +186.0%; QoQ -38.81%)
Gross Profit: $16.759 million (Gross margin 65.11%) (YoY +1,412.37%; QoQ -53.04%)
Operating Income: $17.874 million (Operating margin 69.43%) (YoY -39.83%; QoQ -53.56%)
Net Income: $17.874 million (Net margin 69.43%) (YoY -20.86%; QoQ -53.56%)
EPS: -$1.29 (Diluted) (YoY -304.76%; QoQ -222.86%)...
Financial Highlights
Revenue: $25.741 million (YoY +186.0%; QoQ -38.81%)
Gross Profit: $16.759 million (Gross margin 65.11%) (YoY +1,412.37%; QoQ -53.04%)
Operating Income: $17.874 million (Operating margin 69.43%) (YoY -39.83%; QoQ -53.56%)
Net Income: $17.874 million (Net margin 69.43%) (YoY -20.86%; QoQ -53.56%)
EPS: -$1.29 (Diluted) (YoY -304.76%; QoQ -222.86%)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
25.74M |
186.04% |
-38.81% |
| Gross Profit |
16.76M |
1 412.37% |
-53.04% |
| Operating Income |
17.87M |
-39.83% |
-53.56% |
| Net Income |
17.87M |
-20.86% |
-53.56% |
| EPS |
-1.29 |
-304.76% |
-222.86% |
Key Financial Ratios
operatingProfitMargin
69.4%
operatingCashFlowPerShare
$3.13
freeCashFlowPerShare
$3.13
Management Commentary
Transcript highlights not available in the provided data. No earnings-call quotes or themes could be extracted from an earnings transcript for QQ4 2025. Expected discussion topics in a typical call would include: portfolio performance and credit quality, fee-related earnings, new originations and exits, leverage and liquidity management, and distributions outlook. Management commentary would typically address portfolio diversification, exposure to interest-rate movements, and any tailwinds or headwinds from market conditions.
Not available – QQ4 2025 earnings transcript not provided in the data.
— Management
Not available – QQ4 2025 earnings transcript not provided in the data.
— Management
Forward Guidance
No explicit forward guidance or targets were provided in the supplied materials. Based on the QQ4 2025 financials, management could be expected to emphasize maintaining robust operating cash flow and coverage of distributions, given CFO of $115.1 million and free cash flow of $115.1 million alongside a disclosed payout framework. Key factors investors should monitor include: (1) credit performance and realization trends in the lower middle market portfolio, (2) ongoing leverage levels and interest-rate sensitivity (interest coverage around 2.0x), and (3) portfolio exits or recapitalizations that could impact realized gains and fee-related earnings. Any management commentary around portfolio diversification, risk controls, and discipline in new originations would be critical to assess achievability of long‑run targets.