The following is a summary of the Gladstone Investment (GAIN) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Adjusted Net Investment Income (NII) for Q2 was reported at $0.24 per share.

• Total assets stood at $869 million, a slight decrease from the previous quarter.

• Total investment income reached $22.6 million, an increase from $22.2 million in the prior quarter.

• Net expenses rose to $15.3 million, driven primarily by a $5.4 million increase in accrued capital gains based incentive fees.

• The company realized substantial gains from the exit of Nth Degree, amounting to $42.3 million.

• Distributable book earnings to shareholders remain strong with a monthly distribution consistent at $0.08 per share for an annual run rate of $0.96 per share.

• A supplemental distribution of $0.70 per share was also declared.

Business Progress:

• Gladstone Investment remains engaged in an active investing period, with considerable review and due diligence on multiple new investment opportunities.

• $18.5 million was invested in a secured first lien debt for an add-on acquisition by Nocturne Luxury Villas, an existing portfolio company.

• The company plans continued support for portfolio companies through add-on acquisitions and bridging finance while actively pursuing new buyouts.

Opportunities:

• The outlook for acquisitions appears positive, with an active mergers and acquisitions (M&A) market contributing to a competitive environment and upward pressure on valuations. Gladstone Investment is actively competing and acquiring new companies fitting their financial model.

Risks:

• No explicit risks detected.

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