Gladstone Capital delivered a robust year-end and fourth-quarter 2024 in the context of a still-challenging lower middle market lending environment. The company posted a quarterly revenue of $33.106 million and net income of $31.936 million, or $1.47 per share, driven by strong investment performance and a notable realized/unrealized gain in the portfolio. Net investment income for the year rose 12% to $46.1 million, underscoring ongoing cash-flow resilience and sufficient coverage of the current monthly distribution. A marquee event in the quarter was the exit of the ARA investment, which yielded $63.7 million of equity proceeds alongside a $31.3 million debt investment, with much of the gain sheltered by capital loss carryforwards for tax purposes. Management communicated a strategic emphasis on capital recycling, continued active originations, and selective use of leverage to support asset growth. The company also announced a supplemental distribution of $0.40 per share in December and a continuation of monthly distributions (current run rate $1.98 per share annually, implying about a 7.7% yield at the prevailing stock price). NAV per share rose meaningfully year-over-year (up about 12.7%), while pro forma NAV after the ARA realization and related actions stood near $20.98 per share versus $21.18 reported at 9/30/2024. The operating cash flow remained negative for the quarter due to non-cash valuation effects, a common feature in BDCs with mark-to-market portfolios, while free cash flow remained negative as previously reported. Looking forward, the portfolio turnover backdrop remains supportive, with management signaling higher turnover potential and ongoing deployment of exit proceeds into new growth opportunities, aided by potential bank-partnered financings and continued lead/arranger roles in new vintages. The company’s leverage remained conservatively positioned at roughly 73% of NAV, supporting resilience to a lower-for-longer rate regime and the ability to sustain shareholder distributions through 2025.