Gladstone Investment Corporation (GAIN) AI Stock Analysis

Gladstone Investment Corporation operates as a business development company specializing in lower middle market investments across the United States. It provides financial solutions including buyouts, debt refinancing, and senior and subordinated debt securities such as senior loans, term loans, lines of credit, and mezzanine loans. The company also invests in limited liability company interests, warrants, and options, targeting mature businesses rather than startups. It concentrates on manufacturing, consumer products, and business or consumer services companies with annual revenues between $20 million and $100 million and EBITDA from $3 million to $20 million. Typical investments range from $5 million to $30 million in debt and $10 million to $40 million in equity.

Revenue has fluctuated significantly over recent years, dropping 67.1% in FY2023 to $32.7M before rebounding 215.9% in FY2024 to $103.2M. Revenue subsequently fell 12.9% in FY2025 to $89.9M and dropped 20.5% in FY2026 to $71.5M, yielding a 5-year revenue CAGR of 8.0%. Despite lower top-line revenue in FY2026, net income reached $184.8M with diluted earnings per share of $2.27, supported by an operating margin of 315.8%. For the latest quarter ended June 30, 2026, quarterly revenue expanded 20.4% year-over-year, while quarterly earnings surged 326.5%. Across the trailing twelve months, revenue totaled $103.9M, producing diluted earnings per share of $4.21.

As of June 30, 2026, Gladstone Investment Corporation held $11.6M in cash and short-term investments alongside total assets of $1.30B. Total debt stood at $570.8M, resulting in net debt of $559.3M and a debt-to-equity ratio of 0.88 against shareholders' equity of $646.8M. The company reported a current ratio of 0.26. In FY2026, operating cash flow and free cash flow were both -$101.6M, while dividends paid totaled $57.2M. Over five years, the total share count increased by 19.9%.

At a last close of $15.05, the company has a market capitalization of $648.3M and an enterprise value of $1.17B. The stock trades at a trailing price-to-earnings multiple of 3.6x and an EV to EBITDA of 3.7x, both well below the median of its US-listed Financial Services peers at 12.1x and 11.7x, respectively. However, its forward price-to-earnings ratio of 41.2x sits above the peer median of 10.8x. Over the past year, GAIN delivered a return of 16.5%, trailing the S&P 500 (SPY) return of 16.8%, while its 5-year return of 78.3% trailed the index's 83.0%.

Gladstone Investment Corporation pays a monthly dividend with an annualized forward payout of $0.96 per share, representing a 6.38% dividend yield. The company has paid dividends for 22 consecutive years and generated an annualized 5-year dividend growth rate of 10.0%. Its trailing payout ratio is 14.0%, and its last ex-dividend date was December 21, 2026.

Wall Street coverage includes 3 Strong Buy ratings and 1 Hold rating, with zero Sell or Strong Sell ratings. The mean price target is $17.00, indicating an upside of 13.0% over the last closing price of $15.05. For the current fiscal year ending March 31, 2027, consensus estimates call for revenue of $107.8M and earnings per share of $1.01. Over the last four quarters, the company beat consensus earnings per share estimates twice. The next earnings date is November 9, 2026.

This page is an AI-written research summary of Gladstone Investment Corporation (GAIN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GAIN income statement, GAIN balance sheet, GAIN key metrics, GAIN analyst forecast, GAIN chart. See the GAIN stock overview for the latest quote and news.