Executive Summary
QQ1 2025 results for Gladstone Investment Corporation 500 Notes Due 2026 (GAINN) show a mixed operating backdrop. Revenue of $22.18 million rose modestly year over year by 3.38% and surged QoQ by 146.47%, driven by portfolio activity and retained yields. Gross profit totaled $21.471 million with a robust gross margin of 96.8%, underscoring the strength of net interest income and portfolio yields in the quarter. However, the company reported a net loss of $6.526 million and an EPS of -$0.18, reflecting a heavy burden from interest expense and substantial non-cash adjustments (notably depreciation and amortization reported as a negative entry in the data) as well as significant other income/expense movements. Operating income was a very small positive $0.585 million, and EBITDA registered $0.585 million with an operating margin of 2.64%.
Key Performance Indicators
QoQ: 1 781.36% | YoY:33.50%
QoQ: -98.03% | YoY:-96.54%
QoQ: -128.90% | YoY:-174.28%
QoQ: -128.57% | YoY:-169.23%
Key Insights
Revenue: $22.18m; YoY +3.38%, QoQ +146.47%. Gross Profit: $21.471m; YoY +33.50%, QoQ +1,781.36%. Operating Income: $0.585m; YoY -96.54%, QoQ -98.03%. Net Income: -$6.526m; YoY -174.28%, QoQ -128.90%. EPS: -$0.18; YoY -169.23%, QoQ -128.57%. EBITDA: $0.585m; EBITDARatio 0.026. Net margin: -29.42%; Net debt: $392.20m. Cash provided by operating activities: $9.92m; Free cash flow: $9.92m. Balance sheet highlights: Total assets $914.21m; Total liabilities $436.83m; Total equity $477.38m; Long-term d...
Financial Highlights
Revenue: $22.18m; YoY +3.38%, QoQ +146.47%. Gross Profit: $21.471m; YoY +33.50%, QoQ +1,781.36%. Operating Income: $0.585m; YoY -96.54%, QoQ -98.03%. Net Income: -$6.526m; YoY -174.28%, QoQ -128.90%. EPS: -$0.18; YoY -169.23%, QoQ -128.57%. EBITDA: $0.585m; EBITDARatio 0.026. Net margin: -29.42%; Net debt: $392.20m. Cash provided by operating activities: $9.92m; Free cash flow: $9.92m. Balance sheet highlights: Total assets $914.21m; Total liabilities $436.83m; Total equity $477.38m; Long-term debt $395.39m; Cash $3.19m; Long-term investments $899.14m; Deferred revenue ($-331.69m). Liquidity metrics (Q1 2025): Current ratio 0.0306; Quick ratio 0.0306; Cash ratio 0.0096. Valuation/market metrics: P/BV 1.86; P/S 40.03; P/E negative; Dividend yield 0.99%; Debt ratio 0.43; Debt/equity 0.83.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.18M |
3.38% |
146.47% |
| Gross Profit |
21.47M |
33.50% |
1 781.36% |
| Operating Income |
585.00K |
-96.54% |
-98.03% |
| Net Income |
-6.53M |
-174.28% |
-128.90% |
| EPS |
-0.18 |
-169.23% |
-128.57% |
Key Financial Ratios
operatingProfitMargin
2.64%
operatingCashFlowPerShare
$0.27
freeCashFlowPerShare
$0.27
dividendPayoutRatio
-134.9%
priceEarningsRatio
-34.01
Management Commentary
Management commentary and direct quotes from the QQ1 2025 earnings call are not provided in the supplied dataset. As a result, specific themes, quotes, and context from management discussions could not be extracted. The analysis below therefore relies on the disclosed financial results and the stated investor-facing metrics.
Forward Guidance
No formal forward guidance was included in the provided QQ1 2025 data. Given the current results, investors should monitor: (1) portfolio yields and interest income given the high interest expense burden; (2) credit quality and event-driven losses within long-term investments; (3) changes in deferred revenue balances and related revenue recognition; (4) liquidity and access to capital to support ongoing investments and distributions; (5) the trajectory of operating cash flow versus reported net income, which showed positive CFO despite a negative net income print. In a rising-rate environment, NII dynamics could improve, but execution depends on portfolio performance and cost of capital.