For the quarter ended March 31, 2026, Gladstone Capital generated total investment income of $25.992 million, a 6.0% increase from $24.511 million in Q1, and net investment income of $11.838 million, or $0.52 per share, up 5.1%. Total expenses rose 6.8% to $14.154 million, while cash distribution remained $0.45 per share and net assets increased by $15.459 million, or $0.68 per share.

The company invested $34.0 million in three new portfolio companies and $9.6 million in existing portfolio companies during Q2, offsetting a large early prepayment. Weighted average yield on interest-bearing investments dipped to 11.8% from 12.2%, but a $21.7 million increase in average principal balance and $4.8 million of net unrealized appreciation drove NAV per share to $21.36, up 1.1%.

In April, Gladstone Capital committed $12.7 million to OneSource HoldCo LLC through secured first-lien debt and equity, funding $1.0 million of a $2.0 million credit line, and invested $32.5 million in SWECO Worldwide, Inc. via secured debt and equity while extending a $6.0 million unfunded credit line.

The board declared monthly common distributions of $0.15 per share for April, May and June, totaling $0.45 for the quarter, and preferred distributions totaling $0.390624 per share. Management cited strong prepayment fees and equity distributions from lower middle-market positions as drivers of current performance and affirmed confidence in sustaining distributions through 2026.