Gladstone Capital Corporation (GLAD) AI Stock Analysis

Gladstone Capital Corporation operates as a business development company specializing in financial services tailored for lower middle market businesses in the United States. It provides growth capital, facilitates add-on acquisitions, manages change of control transactions, and implements buy-and-build strategies. Its investment portfolio includes debt instruments such as senior term loans, revolving loans, secured first and second lien term loans, unitranche loans, and subordinated loans, alongside equity investments like common stock, preferred stock, and warrants. The firm maintains an industry-agnostic approach across diverse sectors, typically investing between $7 million to $30 million in companies generating $20 million to $150 million in sales and $3 million to $25 million in EBITDA.

Between FY2020 and FY2025, Gladstone Capital generated a 5-year revenue CAGR of 76.7%. Revenue rose from $32.4M in FY2022 to $58.6M in FY2023, $120.3M in FY2024, and reached $144.8M in FY2025. Net income in FY2025 was $58.1M, down from $94.7M in FY2024, resulting in a net margin of 40.1% and diluted EPS of $2.02. For the trailing twelve months ending June 30, 2026, revenue stood at $98.9M with EPS of $2.13. In the latest quarter ended June 30, 2026, quarterly revenue grew 13.1% year-over-year, while quarterly earnings grew 68.8% year-over-year.

As of June 30, 2026, Gladstone Capital held $2.4M in cash and short-term investments against total debt of $429.9M, resulting in net debt of $427.5M. Total assets stood at $970.1M, while shareholders' equity was $530.7M, yielding a debt-to-equity ratio of 0.81 and a current ratio of 0.26. Operating cash flow improved from negative $10.9M in FY2023 to positive $3.2M in FY2024 and $43.6M in FY2025, with free cash flow matching operating cash flow in each period. In FY2025, the company paid $55.5M in dividends, while its 5-year share count change was 65.4%.

Gladstone Capital trades at a trailing P/E of 8.9x, below the 12.1x median of its US-listed Financial Services peers. Its forward P/E of 10.8x matches the peer median of 10.8x, while its price-to-sales ratio of 4.3x sits above the peer median of 3.2x. The stock trades at a price-to-book ratio of 0.9x and has an enterprise value of $899.1M against a market cap of $426.6M. Over the past year, the stock returned 8.6% compared to 16.8% for the S&P 500 (SPY), and over five years, it gained 30.3% versus 83.0% for the index.

Gladstone Capital pays a monthly dividend with an annual forward payout of $1.80, representing a dividend yield of 9.53%. Its payout ratio is 31.0%. The company has paid dividends for 26 consecutive years, generating a 5-year annualized dividend growth rate of 5.1%. Its last ex-dividend date was December 21, 2026.

Wall Street coverage includes 3 Strong Buy ratings, 0 Buy ratings, and 2 Hold ratings. The mean price target is $22.00, representing 16.5% upside from the last close of $18.88. For the fiscal year ending September 30, 2026, analysts estimate revenue of $100.7M and EPS of $1.97, reflecting an expected EPS decline of 2.4%. For the next fiscal year, 5 analysts project revenue of $109.5M and EPS of $1.97. The company beat EPS estimates in 3 of the last 4 quarters, with the next earnings report scheduled for November 16, 2026.

This page is an AI-written research summary of Gladstone Capital Corporation (GLAD). 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.

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