Executive Summary
GAINN reported a strong year-over-year revenue expansion in QQ4 2025, with revenue of $25.741 million and gross profit of $16.759 million, yielding a gross margin of approximately 65.1%. EBITDA stood at $17.873 million and net income was $17.873 million, supporting an earnings profile that, on a per-share basis, shows an EPS of -$1.29 in the reported figure due to share count and accounting presentation quirks in the dataset. The company generated robust operating cash flow of $115.082 million in the quarter, driving free cash flow of the same magnitude and enabling substantial distributions despite a leveraged balance sheet. Total assets were $1.006 billion, with long-term debt of $455.709 million and total liabilities of $507.320 million, yielding tangible equity of ~$499.084 million and a net debt position of ~$441.411 million. The quarter also reflects meaningful seasonality and quarterly volatility in revenue (Q3 2025 revenue was $42.070 million versus $25.741 million in Q4 2025), underscoring the need to monitor portfolio activity, fee income, and investment gains. The dividend payout amounted to $52.109 million in the period, implying a sizeable cash distribution alongside ongoing debt management. Overall, the QQ4 2025 results point to strong near-term cash generation and liquidity, but elevated leverage and inconsistent per-share metrics necessitate cautious interpretation and closer scrutiny of the portfolio credit quality and debt servicing capacity going forward.
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 in QQ4 2025; YoY change +186.0% (vs. QQ4 2024) and QoQ change -38.8% (vs. QQ3 2025). Gross Profit: $16.759 million; Gross Margin ~65.1%. Operating Income: $17.873 million; Operating Margin ~69.4%. Net Income: $17.873 million; Net Margin ~69.4%; EPS (Diluted): -$1.29 (reported). EBITDA: $17.873 million; EBITDA Margin ~69.4%. Cash Flow: Net cash provided by operating activities $115.082 million; Free cash flow $115.082 million; Cash and equivalents end of period $14.298 mi...
Financial Highlights
Revenue: $25.741 million in QQ4 2025; YoY change +186.0% (vs. QQ4 2024) and QoQ change -38.8% (vs. QQ3 2025). Gross Profit: $16.759 million; Gross Margin ~65.1%. Operating Income: $17.873 million; Operating Margin ~69.4%. Net Income: $17.873 million; Net Margin ~69.4%; EPS (Diluted): -$1.29 (reported). EBITDA: $17.873 million; EBITDA Margin ~69.4%. Cash Flow: Net cash provided by operating activities $115.082 million; Free cash flow $115.082 million; Cash and equivalents end of period $14.298 million; Cash balance at period end $15.154 million. Balance Sheet: Total assets $1.006 billion; Total liabilities $507.320 million; Total stockholders’ equity $499.084 million; Long-term debt $455.709 million; Net debt ~$441.411 million; Debt-to-equity ~0.913; Debt ratio ~45.3%; Dividend yield ~5.69%; Price-to-book ~1.83x. Liquidity and leverage indicators show strong cash generation but substantial leverage, with long-term debt driving a meaningful portion of capital structure. Efficiency: Receivables turnover ~3.57x; Asset turnover ~0.0198x (low asset turnover typical for investment-heavy BDCs); Cash flow to debt ratio ~0.255. Notable variances exist in some ratios in the dataset (e.g., reported interest coverage and some margin metrics), so where possible, computed metrics (e.g., EBITDA/Interest) are used for interpretation. Dividend payout metrics and negative/positive EPS signals should be reviewed in conjunction with the quarterly earnings context and any one-time items or accounting conventions.
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
-326%
operatingCashFlowPerShare
$3.17
freeCashFlowPerShare
$3.17
dividendPayoutRatio
-163%
Management Commentary
Note: The earnings transcript was not provided in the data set. As a result, management quotes and theme-based insights from the QQ4 2025 call could not be extracted. If a transcript is supplied, we will group quotes by themes (strategy, operations, market conditions) and attach context and significance to each quote.
Transcript not provided in the dataset.
— Management
Transcript not provided in the dataset.
— Management
Forward Guidance
No formal forward guidance was disclosed in the QQ4 2025 results dataset. Given the strong operating cash flow generation and the ability to fund sizable distributions, the near-term outlook appears favorable on cash flow grounds. However, the company operates with meaningful leverage and a diversified but investment-heavy portfolio, which implies sensitivity to credit quality, investment pace, and interest rate movements. Investors should monitor: (1) portfolio credit performance and default risk in the middle-market space, (2) fee income composition and investment gains driving revenue, (3) ability to sustain operating cash flow amid a potentially slower growth environment, (4) debt management and refinancing risk, and (5) dividend sustainability relative to earnings and cash flow. If management provides target ranges for net investment income, dividend coverage, or debt metrics in an updated release, we would reassess the outlook against these targets.