Gladstone Investment posts slight Q1 earnings beat as expenses, NAV fall

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Gladstone Investment (NASDAQ:GAIN [https://seekingalpha.com/symbol/GAIN]) on Tuesday turned in fiscal first-quarter earnings that came in slightly above Wall Street expectations, as the business development company logged lower expenses during the three-month period.

Q1 adjusted net investment income per share [https://seekingalpha.com/pr/20198726-gladstone-investment-corporation-reports-financial-results-for-its-first-quarter-ended-june] of $0.24, topping the $0.23 average analyst estimate, dipped from $0.26 in the prior quarter.

Total investment income for the quarter ended June 30, 2025, of $23.5M, vs. $24.3M expected, retreated from $27.6M in the quarter ended March 31, 2025. The sequential decline was due to a $3.5M slide in success fee income and $0.7M decrease in dividend income that did not reoccur in the current quarter as the timing of such fee income is variable.

Total expenses, net of credits to fees, totaled $14.5M in Q1, down from $20.3M in Q4, driven by a $2.3M decrease in accruals for capital gains-based incentive fees in the current quarter.

Total investments, at fair value, accelerated to $1.03B at June 30 from $979.3M at March 31.

Net asset value per share fell to $12.99 at the end of Q1 from $13.55 at end-Q2.

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