Gladstone Investment Q2 investment income falls on lower success fees
GAIN•Gladstone Investment’s Q2 total investment income fell 15% from the prior quarter, largely due to a $5.6 million decrease in variable success fee income. Adjusted net investment income per share dropped 31%, while net asset value per share rose to $16.43.
1. Quarterly results
Total investment income fell 15% sequentially, mainly because variable success fee income decreased by $5.6 million. Adjusted net investment income per share dropped 31% from the previous quarter. Higher capital gains-based incentive fee accruals and increased interest expense from more borrowings raised total expenses.
2. NAV and distributions
Net asset value per share rose slightly to $16.43, driven by unrealized investment appreciation. The company declared monthly distributions of $0.08 per share for October, November and December 2026.
3. Investments and outlook
Gladstone Investment expects proceeds from its SFEG equity investment to be distributed in Q3 or Q4 fiscal 2027. After quarter-end, it invested $56.1 million in McFarlane Toys.
