Cash conversion is weak, as operating cash flow in 2026Q4 was only $16.8M versus $82.4M net income, and dividends paid of $9.6M in 2027Q1 exceeded operating cash flow of $8.1M, requiring short-term debt to cover the shortfall.
Gladstone Investment Corp. (GAIN) cash flow statement — 21-year operating, investing & financing cash flows
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 |
|---|
| Cash from Operations | -101.84M | -101.61M | 113.92M | 85.99M | -4.5M | 77.94M | 44.81M | 35.31M | 93.61M | -29.73M | 32.6M | 4.08M | -97.55M | -33.61M | -39.73M | -48.67M | 67.08M | 99.27M | 13.61M | -57.4M | -122.73M | -148.11M |
| Operating CF Growth % | -1635.73% | -189.19% | 32.49% | 2009.1% | -105.78% | 73.95% | 26.9% | -62.28% | 414.88% | -191.19% | 698.7% | 104.18% | -190.23% | 15.41% | 18.36% | -172.56% | -32.43% | 629.35% | 123.71% | 53.23% | 17.14% | - |
| Net Income | 165.13M | 184.75M | 65.32M | 85.31M | 35.55M | 102.32M | 42.45M | -7.23M | 81.59M | 60.69M | 44.76M | 24.85M | 50.21M | -1.33M | 17.28M | 21.97M | 16.44M | -11.07M | -11.45M | -941K | 7.27M | 6.05M |
| Depreciation & Amortization | 2.06M | 3.88M | 0 | 0 | 12.22M | 0 | 0 | 1.49M | 500K | 500K | 75K | 0 | 450K | 358K | 815K | -9K | 8K | 2K | 19.87M | 11.8M | 4.13M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -180.96M | -328.83M | 43.25M | -8.99M | -54.54M | -34.73M | 8.35M | 58.24M | -21.59M | -96.23M | -13.08M | -19.43M | -150.97M | -27.57M | -60M | -71.87M | 54.08M | 108.74M | 2.13M | -75.67M | -121.46M | -153.55M |
| Working Capital Changes | 13.01M | 38.59M | 5.35M | 9.68M | 2.27M | 10.35M | -6M | -17.19M | 33.12M | 5.32M | 847K | -1.34M | 2.76M | -5.07M | 2.17M | 1.24M | -3.45M | 1.6M | 3.06M | 7.41M | -12.67M | -618.78K |
| Cash from Investing | -103.91M | -143.72M | -97.62M | -155.92M | -98.22M | -41.34M | -74.54M | -89.18M | 0 | 0 | 0 | 0 | 0 | -100.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -111.37M | -173.62M | -221.22M | -183.92M | -133.76M | -92.74M | -95.27M | -145.45M | 0 | 0 | 0 | 0 | 0 | -132.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 7.46M | 29.9M | 123.6M | 28M | 35.53M | 51.4M | 20.73M | -89.18M | 0 | 0 | 0 | 0 | 0 | 31.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -103.91M | -143.72M | -97.62M | -155.92M | -98.22M | -41.34M | -74.54M | -234.63M | 0 | 0 | 0 | 0 | 0 | -100.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 145.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 41.6M | 88.84M | -4.37M | 69.91M | -6.74M | -24.5M | 28.07M | -34.85M | -93.98M | 29.6M | -34.09M | -4.52M | 97.92M | -47.74M | 34.09M | 59.64M | -74.21M | -18.79M | -15.73M | 28.97M | 84.85M | 223.78M |
| Dividends Paid | -66.48M | -57.16M | -60.95M | -76.06M | -47.05M | -38.85M | -30.86M | -33.92M | -30.52M | -28.93M | -22.7M | -22.7M | -20.58M | -18.8M | -14.55M | -13.58M | -10.6M | -10.6M | -20.76M | -15.4M | -14.16M | -6.46M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -94.37M | -57.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -32K | 0 | 0 |
| Stock Issued | -7.33M | 41.64M | 2M | 43.9M | 5.49M | 0 | 21.02M | 3.13M | 1.87M | 22.48M | 0 | 3.66M | 24.42M | 0 | 32.97M | 0 | 10K | -155K | 40.56M | 0 | -133K | 230.29M |
| Net Stock Activity | -7.33M | 41.64M | 2M | 43.9M | 5.49M | -94.37M | -36.48M | 3.13M | 1.87M | 22.48M | 0 | 3.66M | 24.42M | 0 | 32.97M | 0 | 10K | -155K | 40.56M | -32K | -133K | 230.29M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -50K |
| Other Financing | 69.56M | -333K | -763K | -1.91M | -385K | 90.94M | 0 | -56K | -4.43M | -1.26M | -3.59M | -1.93M | -4.96M | -75K | -2.34M | -2.79M | -825K | -573K | -971K | -430K | -862K | 0 |
| Net Change in Cash | -169.6M | -12.77M | 11.93M | -28K | -11.25M | 12.1M | -1.66M | 455K | -362K | -132K | -1.49M | -440K | 368K | -81.35M | -5.64M | 10.97M | -7.14M | 80.48M | -2.12M | -28.43M | -37.88M | 75.67M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 98.22M | 0 | 0 | 89.18M | 0 | 0 | 0 | 0 | 0 | 100.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 2.38M | 15.15M | 3.22M | 3.25M | 14.49M | 2.4M | 4.06M | 3.6M | 3.97M | 4.1M | 5.59M | 4.92M | 4.55M | 85.9M | 91.55M | 80.58M | 87.72M | 7.24M | 9.36M | 37.79M | 75.67M | 3.64K |
| Cash at End | 3.59M | 2.38M | 15.15M | 3.22M | 3.25M | 14.49M | 2.4M | 4.06M | 3.6M | 3.97M | 4.1M | 4.48M | 4.92M | 4.55M | 85.9M | 91.55M | 80.58M | 87.72M | 7.24M | 9.36M | 37.79M | 75.67M |
| Interest Paid | 10.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 777K | 762K | 2.18M | 5.43M | 7.37M | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -101.84M | -101.61M | 113.92M | 85.99M | -4.5M | 77.94M | 44.81M | 35.31M | 93.61M | -29.73M | 32.6M | 4.08M | -97.55M | -33.61M | -39.73M | -48.67M | 67.08M | 99.27M | 13.61M | -57.4M | -122.73M | -148.11M |
| FCF Growth % | -186.45% | -189.19% | 32.49% | 2009.1% | -105.78% | 73.95% | 26.9% | -62.28% | 414.88% | -191.19% | 698.7% | 104.18% | -190.23% | 15.41% | 18.36% | -172.56% | -32.43% | 629.35% | 123.71% | 53.23% | 17.14% | - |
Quick answers to the most common questions about buying GAIN stock.
Gladstone Investment Corp. (GAIN) generated $-101.6M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Gladstone Investment Corp. (GAIN) reported negative free cash flow of $101.6M in 2026, indicating capital requirements exceeded cash from operations.
Gladstone Investment Corp. (GAIN) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Gladstone Investment Corp. (GAIN) returned $57.2M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Lumpy exit-driven earnings
Metrics are mathematically derived from official filings.
Retained Earnings Fuel Capital Base
GAIN's operating cash flow averaged $8.1M in 2027Q1, but net income was zero, indicating that capital generation is heavily dependent on realized gains from exits, as per quarterly filings.
The sharp drop in net income to zero in 2027Q1, despite positive operating cash flow, suggests that the company's earnings are not organically generated but rather driven by discrete exit events. This pattern implies that retained earnings are insufficient to fund new investments without external capital, and the low debt-to-equity ratio of 0.84% may indicate a conservative leverage stance or a lack of deployment opportunities.
Securities Portfolio Cash Flows Volatile
Investment purchases surged to $187.1M in 2025Q3 but fell to $600K in 2027Q1, while sales were minimal, indicating a slowdown in portfolio activity, as reported in cash flow statements.
The dramatic reduction in investment purchases from $187.1M to $600K over six quarters suggests a deliberate pause in new deployments, possibly due to unattractive valuations or a focus on conserving cash. The near-zero sales in 2027Q1, after a $90.1M sale in 2025Q4, indicates that exit activity has stalled, which may pressure future dividend coverage if this trend persists.
Loan Originations Contract Sharply
Loan purchases dropped from $187.1M in 2025Q3 to $600K in 2027Q1, a 99.7% decline, while deposit inflows were absent, suggesting a contraction in lending activity, per cash flow data.
The near-cessation of loan originations in 2027Q1, combined with the lack of deposit inflows, indicates that GAIN is not actively growing its portfolio. This may reflect a cautious stance amid uncertain economic conditions or a lack of attractive investment opportunities in the lower middle market. The $1.13M cash balance further underscores the liquidity constraints that may be limiting new loan commitments.
Dividends Outpace Operating Cash Flow
Dividends paid totaled $9.6M in 2027Q1, exceeding operating cash flow of $8.1M, a shortfall that was covered by short-term debt, as per cash flow statements.
The dividend payout ratio relative to operating cash flow exceeded 100% in 2027Q1, indicating that the distribution is not fully covered by cash generated from operations. This reliance on external financing to maintain dividends may be unsustainable if operating cash flow does not improve, especially given the lumpy nature of GAIN's earnings. Investors should monitor whether future exits provide the necessary cash to support the dividend.
Credit Provisions Swing Dramatically
Loan loss provisions swung from a $13.7M charge in 2026Q4 to a $9.9M benefit in 2027Q1, reflecting volatile credit conditions, as reported in cash flow data.
The reversal of provisions in 2027Q1 suggests that credit quality may have improved or that prior provisions were excessive, but the volatility indicates that GAIN's portfolio is sensitive to economic fluctuations. The $9.9M benefit in 2027Q1 contributed to the positive operating cash flow, but such reversals are not a reliable source of recurring cash. This pattern warrants close monitoring of non-accrual rates and portfolio company performance.
Cash Flow Masks Equity Gains
Operating cash flow in 2026Q4 was only $16.8M despite net income of $82.4M, highlighting that reported earnings are largely non-cash, as per cash flow statements.
The wide gap between net income and operating cash flow in 2026Q4 suggests that a significant portion of earnings came from unrealized gains on investments, which do not generate cash. This implies that the company's true cash-generating ability is lower than reported profitability, and dividend sustainability depends on realized exits rather than paper gains. Investors should focus on net investment income and realized gains to assess cash flow quality.