Gladstone Capital

Gladstone Capital Corp. is a business development company, which invests in debt and equity securities consisting primarily of secured first and second lien term loans to lower middle market businesses. The company was founded on May 30, 2001 and is headquartered in McLean, VA.

Earnings data Q2 2021

Earnings data Q3 2021

Earnings data Q4 2021

Earnings data Q1 2022

Earnings data Q2 2022

Earnings data Q3 2022

Earnings data Q4 2022

Earnings data Q1 2023

Earnings data Q2 2023

Earnings data Q3 2023

Earnings data Q4 2023

Earnings data Q1 2024

Earnings data Q2 2024

Earnings data Q3 2024

Earnings data Q4 2024

Earnings data Q1 2025

Gladstone Capital excels in Q4 2024, eyes growth opportunities

Gladstone Capital delivered a robust performance in Q4 2024, driven by strategic investments and a focus on growth-oriented businesses.
While challenges such as declining net investment income and concentration issues were noted, opportunities for expansion and optimization exist.
The company's financial stability, prudent management, and strong Q4 results position it well for future growth and success.

Revenue

Cost of revenue

Gross profit

Operating expenses

SG&A

Other

Operating income

EBITDA

Net income

Earnings per share

Total assets

Current assets

Cash & equivalents

Receivables

Inventory

Non-current assets

Net PPE

Intangibles

Total liabilities

Current liabilities

Short term debt

Income tax payable

Non-current liabilities

Long-term debt

Total equity

Stockholders equity

Minority interest

Total liabilities & equity

Total debt

Net debt

Book value per share

Cash from operations

Funds from operations

Change in working capital

Cash from investing

Capital expenditure

Purchase/sale of investments

Purchase/sale of business

Other sources

Cash from financing

Change in stock

Change in debt

Cash dividends paid

Cash from other sources

Net change in cash

Free cash flow

Blackstone Secured Lending Fund

Capital Southwest

Fidus Investment

Golub Capital BDC

The financial outlook for many BDCs is not promising. Already lower base rates will continue to depress results in Q4 reports. The trajectory for SOFR is not great either.

5 BDCs With High Dividend Resistance To Falling Interest Rates

VanEck Vectors BDC Income ETF

Monroe Capital

Oaktree Specialty Lending

Portman Ridge Finance Corp

BDCs offer attractive opportunities for income investors to enhance their portfolio yields. Yet, since the yields are so enticing, the chances are high for getting caught in value traps. In the article I elaborate on two BDCs that are very close to cutting their dividends with a high probability of making the announcements in 2025.

Dividend Cut Alert: 2 BDCs With Likely Lower Dividends In 2025

Gladstone Capital focuses on providing alternative financing to US lower middle-market companies, with a portfolio heavily concentrated in debt investments. Despite recent interest rate cuts, GLAD's net investment income still covers its regular monthly dividend payments, though future cuts may challenge this coverage. GLAD typically trades at a premium to net asset value, aiding capital gathering, but economic and Fed-related uncertainties may lead to higher stock price volatility.

Gladstone Capital's Dividend Coverage May Be In Trouble

MCLEAN, VA / ACCESSWIRE / November 15, 2024 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") announced that Terry Lee Brubaker will be retiring as Chief Operating Officer of the Company effective December 2, 2024. Mr. Brubaker is also retiring as director and executive officer of Gladstone Management Corporation, the Company's investment adviser, and as a member of the board of managers and an executive officer of Gladstone Administration, LLC, the Company's administrator, also effective December 2, 2024.

Gladstone Capital Announces Retirement of Chief Operating Officer Terry Lee Brubaker

Gladstone Capital (NASDAQ:GLAD ) Q3 2024 Earnings Conference Call November 14, 2024 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel and Secretary Bob Marcotte - President Nicole Schaltenbrand - CFO and Treasurer Conference Call Participants Mickey Schleien - Ladenburg Thalmann Robert Dodd - Raymond James Operator Greetings. Welcome to Gladstone Capital Corporation Year-End and Fourth Quarter Earnings Call.

Gladstone Capital (GLAD) Q3 2024 Earnings Conference Call Transcript

I maintain a hold rating on Gladstone Capital due to a weaker distribution coverage, lack of non-accrual improvements, and premium price valuation. Gladstone's portfolio strategy focuses on senior secured debt, providing lower risk and stability, but the recent slowdown in new investments is concerning. GLAD stock's current dividend yield of 7.7% is attractive, but the potential for a dividend cut exists if interest rates continue to fall and negatively impact earnings.

Gladstone Capital: Q4 Reveals Weakened Dividend Coverage

Gladstone Capital (GLAD) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.56 per share a year ago.

Gladstone Capital (GLAD) Q4 Earnings and Revenues Miss Estimates

MCLEAN, VA / ACCESSWIRE / November 13, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its fourth quarter and fiscal year ended September 30, 2024. Please read the Company's Annual Report on Form 10-K filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov and the Investors section of the Company's website at www.GladstoneCapital.com.

Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2024

MCLEAN, VA / ACCESSWIRE / November 12, 2024 / Gladstone Capital Corporation (NASDAQ:GLAD) (the "Company") announced today that its board of directors declared the following additional supplemental cash distribution to common stockholders payable in December 2024. Common Stock: A supplemental distribution of $0.40 per share of common stock in December 2024 payable per the table below.

Gladstone Capital Announces $0.40 Supplemental Cash Distribution to Common Stockholders

MCLEAN, VA / ACCESSWIRE / November 12, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) announces the following event: What: Gladstone Capital Corporation's Fourth Fiscal Quarter ended September 30, 2024 Earnings Call & Webcast When: Thursday, November 14, 2024 @ 8:30 a.m. Eastern Time Website: https://event.choruscall.com/mediaframe/webcast.html?webcastid=pT6trqFd How: By webcast -- Log on to the web at the address above By phone -- Please call (866) 424-3437 Contact: Gladstone Capital Corporation, (703) 287-5893 A conference call replay will be available after the call and will be accessible through November 21, 2024.

Gladstone Capital Corporation Earnings Call and Webcast Information

Gladstone Capital (GLAD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Earnings Preview: Gladstone Capital (GLAD) Q4 Earnings Expected to Decline

MCLEAN, VA / ACCESSWIRE / November 4, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) ("Gladstone Capital") announced today the sale of its equity interest and the prepayment of its debt investment in Antenna Research Associates, Inc. ("ARA"). As a result of this transaction, Gladstone Capital realized a significant gain on its equity investment.

Gladstone Capital Corporation Exits its Investment in Antenna Research Associates, Inc.

Gladstone Commercial

Gladstone Land

MCLEAN, VA / ACCESSWIRE / November 1, 2024 / Gladstone Securities LLC, an affiliated broker-dealer of The Gladstone Companies that acts as dealer manager on alternative investment offerings for certain affiliated Gladstone funds, including Gladstone Capital Corporation (NASDAQ:GLAD), Gladstone Land Corporation (NASDAQ:LAND) and Gladstone Commercial Corporation (NASDAQ:GOOD), has hired Stephanie Conkright as a Director of National Accounts, primarily covering the Independent Broker Dealer channel. Stephanie will join Sean Boyd (Director of National Accounts) as he transitions to primarily developing and covering the RIA channel.

Gladstone Securities Expands National Accounts Department

MCLEAN, VA / ACCESSWIRE / October 8, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") announced today that its board of directors declared the following monthly cash distributions for October, November and December 2024 and also announced its plan to report earnings for its fourth fiscal quarter ended September 30, 2024. Cash Distributions: Common Stock: $0.165 per share of common stock for each of October, November and December 2024, payable per the table below.

Gladstone Capital Announces Monthly Cash Distributions for October, November and December 2024 and Conference Call Date

MCLEAN, VA / ACCESSWIRE / October 7, 2024 / Gladstone Securities LLC ("Company"), an affiliated broker-dealer of The Gladstone Companies, that acts as dealer manager on alternative investment offerings for certain affiliated Gladstone funds, including Gladstone Capital Corporation (Nasdaq: GLAD), Gladstone Land Corporation (Nasdaq: LAND) and Gladstone Commercial Corporation (Nasdaq: GOOD), has hired Bryan Bluth as its External Wholesaler for the Western United States and Tim McCabe as its External Wholesaler for the Eastern United States, both reporting to John Sabey, the Company's Director of National Sales. Mr. Bluth, based in Arizona, joins the Company as the Western Region External Wholesaler.

Gladstone Securities Hires East and West Region Wholesalers

The Fed is about to cut interest rates, which should start pushing down the overall yield levels. While this will render a less interesting environment for dividend investors to pick securities, there are also some specific names, where the lower financing costs will unlock notable value. In this article, I elaborate on two monthly paying dividend stocks that should become even more attractive after the Fed reduces the interest rates.

2 Monthly Dividends I Will Be Buying After The Interest Rate Cut

Gladstone Capital offers a covered 9% yield, paid monthly, but trades at a 12% premium to NAV, suggesting it's fully valued. The BDC's portfolio is primarily in First and Second Lien debt, with a fair value of $757.8 million, despite a 4% QoQ decline. Improved net investment income boosted the dividend pay-out ratio, but a higher non-accrual ratio poses a risk to the credit profile.

Gladstone Capital: 9% Yield, Improving Coverage, 1.12x NAV

Gladstone Capital benefits from rising interest rates, but potential rate cuts could negatively impact its net investment income and dividend sustainability. Despite strong dividend coverage currently, GLAD's heavy reliance on floating rate investments makes future dividend sustainability uncertain if rates decline significantly. Trading at a premium to NAV, GLAD's valuation does not fully account for the risk of interest rate cuts, leading me to rate it as a hold.

Gladstone Capital: Just Pause For Now

The outlook for BDCs is not that bright, especially for those names that have chosen risk-seeking strategies. The headwinds include lower interest rates, increased corporate distress, and inactive M&A and capital markets. However, just as in any asset class or sector, there are exceptions.

2 High Yield BDCs With One Of The Lowest Debt Profiles

Gladstone Capital is a relatively small BDC focusing on US lower middle market companies through debt and equity investments. Target entities have EBITDA ranging from $3m to $25m. GLAD's portfolio has a higher share of first-lien debt investments and lower non-accruals than a close peer. As a result, its dividend has better coverage. Nevertheless, the Company remains exposed to market-driven risk factors such as potential recession (rising non-accruals) and interest rate cuts (worse dividend coverage).

Gladstone Capital Is Better Prepared Than Its Affiliated Fund

MCLEAN, VA / ACCESSWIRE / August 22, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") announced that Katharine Cornell Gorka has been elected to the 2027 class of Directors for the Company, effective August 22, 2024. Ms. Gorka, 64, is the President of Threat Knowledge Group, which provides training and expertise on threats to U.S. national security, and also serves as the chair of the Fairfax County Republican Party.

Gladstone Capital Corporation Announces Election of Katharine Cornell Gorka as Director

Arbor Realty Trust

Hercules Capital

PennantPark Investment

Ship Finance

24/7 Wall St. Insights After a brief rally in the sector, small-cap stocks have pulled back again.

5 Small-Cap Ultra-High-Yield Stocks That Pay Dividends as High as 14%

Gladstone Capital operates as a business development company that focuses on making debt investments to middle market companies. GLAD's portfolio strategy has exposure to 94% floating rate investments, which has helped them capitalize on higher interest rates. However, interest rates may get cut and negatively impact earnings. GLAD's Q3 earnings showed a 14% increase in net investment income.

Gladstone Capital: Solid Distribution Coverage But Rising Non-Accruals (Rating Downgrade)

MCLEAN, VA / ACCESSWIRE / August 14, 2024 / Gladstone Capital Corporation (NASDAQ:GLAD) ("Gladstone Capital" or "Gladstone") is pleased to announce the completion of a junior debt facility in support of Bluejay Capital Partners (‘Bluejay Capital" or "Bluejay") and Trive Capital's ("Trive") acquisition of RPM Freight Systems, LLC ("RPM"), a technology-driven, asset-light provider of transportation management solutions to new and used finished vehicle logistics and other specialized freight markets in North America and Europe. Headquartered in Royal Oak, Michigan, and serving 30+ countries across North America and Europe, RPM provides data driven solutions to serve OEMs, online dealers, re-marketing firms, and more in all their finished vehicle transport and component freight needs.

Gladstone Capital Announces Financing To Support RPM

Gladstone Capital (GLAD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

News for Gladstone Capital ETF (GLAD)