Gladstone Investment Corporation - Business Development Company · NASDAQ:GAIN
Gladstone Investment Corporation - Business Development — Gladstone Investment — FY2026 Earnings Presentation
31 slides from Gladstone Investment Corporation - Business Development's earnings presentation, Mar 31, 2026
Slide 1: Quarterly Overview March 31, 2026
QUARTERLY OVERVIEW March 31, 2026
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may include forward-looking statements. These forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any futu
Slide 3: Table of Contents
Table of Contents QUARTERLY UPDATE Company Overview and Objectives Investment Strategy & Value Creation Current Portfolio, Successful Exits & Market Update Financial Highlights, Shareholder Value & Capital Structure 3 3
Slide 4: Who We Are – Overview & Objectives
Quarterly Presentation WHO WE ARE – OVERVIEW & OBJECTIVES 4
Slide 5: Gladstone Investment | Who We Are
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Who We Are GLADSTONE INVESTMENT SIGNIFICANT CAPITAL EXPERIENCED MANAGEMENT TEAM BACKGROUND (1) RAISED AND DEPLOYED WITH PROVEN TRACK RECORD • Founded in 2005 with the purpose of investing • Nasdaq symbol “GAIN” | market cap of $565 • External
Slide 6: Gladstone Investment | Overview
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Differentiated buyout structure • Primary equity investor – lead sponsor in majority of prospective transactions, often partnering with existing management teams • Differentiated approach – turnkey provider of the equity & secured de
Slide 7: Gladstone Investment | Overview
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Evergreen fund structure creates alignment with management • Investment decisions not guided by fundraising or end-of-fund deadlines unlike a traditional buy-out fund GAIN is differentiated • Provides portfolio company boards and man
Slide 8: Gladstone Investment | Overview
WHO WE ARE – OVERVIEW & OBJECTIVES Gladstone Investment | Overview Delivering to investors consistent and increasing distributions • Senior secured debt provides downside protection, along with the upside potential of GAIN’s equity investments Investment structure creates • No third-party sponsor ri
Slide 9: Upside Potential Driven by Focus on Equity Securities
WHO WE ARE – OVERVIEW & OBJECTIVES Upside Potential Driven by Focus on Equity Securities • GAIN’s equity ownership provides further upside potential to shareholders through prospective Meaningful Equity Component in GAIN Portfolio1 capital gains and other income from successful exits which support s
Slide 10: Growing Portfolio
WHO WE ARE – OVERVIEW & OBJECTIVES Growing Portfolio From 4/1/2010 to 3/31/2026, we have: • Made investments in 53 new companies of approximately $1.8 billion1 • Exited 33 companies resulting in a return of proceeds of $1.1 billion1,2 $1,400.0 $1,309.2 $1,300.0 $1,200.0 $1,100.0 $974.3 Total investm
Slide 11: History of Strong Monthly and Supplemental Distributions
WHO WE ARE – OVERVIEW & OBJECTIVES History of Strong Monthly and Supplemental Distributions • From inception through 3/31/26, GAIN has paid 249 consecutive monthly distributions to common shareholders • GAIN’s regular annual distribution run-rate has increased 100% from $0.48 per common share in FY1
Slide 12: History of Strong Valuation Creation
WHO WE ARE – OVERVIEW & OBJECTIVES History of Strong Valuation Creation • Since 3/31/11, GAIN has generated $23.70 per share of cumulative shareholder value through NAV appreciation, consistent monthly distributions and significant supplemental distributions, representing total value growth of 263%
Slide 13: Investment Strategy & Value Creation
Quarterly Presentation INVESTMENT STRATEGY & VALUE CREATION 13
Slide 14: Investment Focus and Process
INVESTMENT STRATEGY & VALUE CREATION Investment Focus and Process Investment Focus • Target stable lower middle market companies with EBITDA of $5 – $25 million • Investment size (debt & equity) generally up to $75 million (typically 70% debt & 30% equity) • Lead or co-lead prospective transactions
Slide 15: Investment Focus and Process
INVESTMENT STRATEGY & VALUE CREATION Investment Focus and Process Deal Sourcing • Source opportunities from investment banks, M&A advisory firms, and industry executives Driving performance with • Regionally focused sourcing strategy, spearheaded by senior members of the investment team a focused an
Slide 16: Risk Management and Value Creation
INVESTMENT STRATEGY & VALUE CREATION Risk Management and Value Creation GAIN takes a long-term approach with a strategy to deploy debt & equity designed to streamline post-close value creation. 1 2 CERTAINTY AND INVESTMENT HORIZON SPEED TO CLOSE No third-party capital required to Long-term investmen
Slide 17: Value Creation Across the Portfolio
INVESTMENT STRATEGY & VALUE CREATION Value Creation Across the Portfolio Equity ownership allows GAIN to effect change with its investments. EXPERIENCED SALES AND STRATEGIC PLANNING ADD-ON AND PLATFORM STRATEGIES GOVERNANCE STRUCTURE OPERATIONAL INITIATIVES GAIN helps to establish an effective At th
Slide 18: Current Portfolio, Successful Exits & Market Update
Quarterly Presentation CURRENT PORTFOLIO, SUCCESSFUL EXITS & MARKET UPDATE 18
Slide 19: Portfolio is Broad and Diversified
CURRENT PORTFOLIO, SUCCESSFUL EXITS & MARKET UPDATE Portfolio is Broad and Diversified 1 MANUFACTURING BUSINESS/CONSUMER SERVICES CONSUMER PRODUCTS 1 Portfolio companies as of 3/31/2026. Excludes our investment in Gladstone Alternative Income Fund. 19
Slide 20: Geographic Diversification
CURRENT PORTFOLIO, SUCCESSFUL EXITS & MARKET UPDATE Geographic Diversification 1 1 Portfolio companies as of 3/31/2026. Excludes our investment in Gladstone Alternative Income Fund. 20
Slide 21: Buyout Market Update
CURRENT PORTFOLIO, SUCCESSFUL EXITS & MARKET UPDATE Buyout Market Update Increased deal flow leading to more actionable opportunities • GAIN primarily targets two sets of intermediaries to obtain deal flow: o Investment Banks and M&A Advisory Firms – generally through a bidding process that targets
Slide 22: Financial Highlights, Shareholder Value & Capital Structure
Quarterly Presentation FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE 22
Slide 23: Continuous NAV Growth Since FY 2011
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Continuous NAV Growth Since FY 2011 • Continuous growth in overall NAV since FY 2011, driven by diligent growth and value creation in investment portfolio • Significant NAV per share growth to $16.78 at 3/31/2026 from $9.00 at 3/31/2011 $1,
Slide 24: Investment Income Growth Since FY 2011
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Investment Income Growth Since FY 2011 • Significant growth in Investment Income since FY 2011, driven by growth in investment portfolio, increased yields and other income. • Other income is comprised of dividends on preferred investments a
Slide 25: Successful Realizations Enhance Shareholder Value
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Successful Realizations Enhance Shareholder Value History of exits generating significant capital gains. GAIN’s target investment mix of 70% debt and 30% equity provides potential for high returns through consistent current yield and capita
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Financial Highlights1 FISCAL YEAR ENDED FISCAL YEAR ENDED MARCH 31, 2026 MARCH 31, 2025 MARCH 31, 2024 MARCH 31, 2023 MARCH 31, 2022 Net investment (loss) income (NII) $ (3,752) $ 28,095 $ 21,777 $ 37,000 $ 14,990 (+) Capital gains-based in
Slide 27: History of Driving High Shareholder Returns
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE History of Driving High Shareholder Returns Long-term return on equity outperforming compared to industry peer group.1 Return on Equity 3/31/2026 35% 32% 30% 25% 21% 20% 20% 17% 15% 9% 9% 10% 10% 10% 8% 8% 6% 6% 5% 0% 1 Year 3 Years 5 Years
Slide 28: History of Driving High Shareholder Returns
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE History of Driving High Shareholder Returns Greater long-term total return compared to BDC peer group.1 5- AND 10-YEAR TOTAL RETURNS OF 103% AND 444% VS. BDC INDUSTRY PEERS OF 36% AND 109% 5-Year Total Return 10-Year Total Return 240% 550%
Slide 29: Capital Structure: Conservative Approach
FINANCIAL HIGHLIGHTS, SHAREHOLDER VALUE & CAPITAL STRUCTURE Capital Structure: PUBLICLY TRADED NOTES Conservative Approach • GAINN: $127.9MM of 5.00% 2026 Notes1 • GAINZ: $134.6MM of 4.875% 2028 Notes • GAIN maintains a conservative balance sheet with low • GAINI: $126.5MM of 7.875% 2030 Notes lever
Slide 30: Continue to Execute on Strategy
OUTLOOK Continue to Execute on Strategy EXECUTE ON BUYOUT STRATEGY • Expand portfolio through attractive investments • Drive portfolio company value creation through active ownership Disciplined underwriting and continued portfolio performance allows GAIN to PROVIDE STRONG AND GROWING DISTRIBUTIONS
Slide 31: Corporate Data
Corporate Data Key Executive Officers Research Coverage Websites Independent Directors David Dullum B. Riley Securities Gladstone Investment: Michela A. English CEO & President Sean-Paul Adams www.gladstoneinvestment.com Katharine C. Gorka Clear Street Erika Highland Mickey M. Schleien Investment Ad