Revenue and earnings are highly volatile, with net income swinging from $82.4M in 2026Q4 to zero in 2027Q1, driven by a $93.0M operating income in 2026Q4 and a $9.9M provision benefit in 2027Q1, while NII has stagnated around $13M and NIM compressed to 1.0%.
Gladstone Investment Corp. (GAIN) annual income statement — 21-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | 51.64M | 54.83M | 55.37M | 57.67M | 44.4M | 46.57M | 42.72M | 45.6M | 43.48M | 44.77M | 42.61M | 42.24M | 33.15M | 28.39M | 23.67M | 18.82M | 15.03M | 17.83M | 19.9M | 20.16M | 16.65M | 0 |
| NII Growth % | -18.78% | -0.97% | -4% | 29.9% | -4.66% | 9% | -6.3% | 4.85% | -2.86% | 5.06% | 0.86% | 27.45% | 16.77% | 19.91% | 25.78% | 25.2% | -15.71% | -10.37% | -1.31% | 21.1% | - | - |
| Net Interest Margin % | 3.96% | 4.14% | 5.5% | 6.15% | 5.8% | 6.29% | 6.64% | 7.91% | 6.85% | 7.33% | 8.27% | 8.4% | 6.86% | 8.58% | 6.23% | 5.79% | 6.23% | 6% | 6.09% | 5.72% | 5.14% | 0% |
| Interest Income | 92.21M | 95.85M | 83.61M | 81.79M | 60.28M | 59.65M | 47.16M | 49.55M | 49.63M | 48.8M | 46.15M | 46.4M | 36.69M | 30.46M | 24.8M | 19.59M | 15.72M | 19.82M | 25.25M | 27.89M | 17.26M | 0 |
| Interest Expense | 40.57M | 41.02M | 28.25M | 24.12M | 15.88M | 13.08M | 4.44M | 3.96M | 6.15M | 4.03M | 3.54M | 4.15M | 3.54M | 2.08M | 1.13M | 768K | 690K | 1.98M | 5.35M | 7.73M | 608K | 0 |
| Loan Loss Provision | 8.91M | 16.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 24.51M | -24.37M | 6.27M | 21.38M | -11.74M | 52.58M | 6M | -37.59M | 55.75M | 20.56M | 6.79M | -13.11M | 17.74M | -29.35M | -5.19M | 5.47M | 3.68M | -25.77M | -30.97M | -20.81M | -7.86M | 0 |
| Non-Interest Income % | 32.19% | -80% | 10.17% | 27.04% | -35.96% | 53.03% | 12.32% | -469.52% | 56.18% | 31.48% | 13.74% | -44.98% | 34.86% | 3047.56% | -28.09% | 22.53% | 19.68% | 324.6% | 279.65% | 3206.47% | -89.33% | - |
| Total Net Revenue | 76.16M | 30.46M | 61.63M | 79.05M | 32.66M | 99.15M | 48.73M | 8.01M | 99.23M | 65.33M | 49.4M | 29.14M | 50.88M | -963K | 18.48M | 24.29M | 18.71M | -7.94M | -11.07M | -649K | 8.79M | 0 |
| Revenue Growth % | -10.58% | -50.58% | -22.03% | 142.07% | -67.06% | 103.47% | 508.64% | -91.93% | 51.9% | 32.25% | 69.52% | -42.74% | 5383.8% | -105.21% | -23.93% | 29.81% | 335.69% | 28.31% | -1606.47% | -107.38% | - | - |
| Non-Interest Expense | -46.91M | -211.92M | -3.69M | -6.26M | -2.89M | -3.17M | 6.27M | 15.24M | 17.64M | 4.64M | 4.63M | 4.28M | 669K | 366K | 1.2M | 2.33M | 2.27M | 3.13M | 374K | 292K | 1.52M | -6.05M |
| Efficiency Ratio | -61.6% | -695.72% | -5.98% | -7.92% | -8.86% | -3.19% | 12.88% | 190.36% | 17.78% | 7.1% | 9.38% | 14.7% | 1.31% | -38.01% | 6.5% | 9.58% | 12.16% | -39.43% | -3.38% | -44.99% | 17.33% | - |
| Operating Income | 114.16M | 225.77M | 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 |
| Operating Margin % | 149.9% | 741.19% | 105.98% | 107.92% | 108.86% | 103.19% | 87.12% | -90.36% | 82.22% | 92.9% | 90.62% | 85.3% | 98.69% | 138.01% | 93.5% | 90.42% | 87.84% | 139.43% | 103.38% | 144.99% | 82.67% | - |
| Operating Income Growth % | - | 245.65% | -23.43% | 139.98% | -65.26% | 141% | 686.87% | -108.87% | 34.44% | 35.57% | 80.1% | -50.5% | 3878.33% | -107.69% | -21.34% | 33.62% | 248.49% | 3.3% | -1116.68% | -112.95% | 20.06% | - |
| Pretax 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 |
| Pretax Margin % | 216.83% | 606.52% | 105.98% | 107.92% | 108.86% | 103.19% | 87.12% | -90.36% | 82.22% | 92.9% | 90.62% | 85.3% | 98.69% | 138.01% | 93.5% | 90.42% | 87.84% | 139.43% | 103.38% | 144.99% | 82.67% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| 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 |
| Net Margin % | 216.83% | 606.52% | 105.98% | 107.92% | 108.86% | 103.19% | 87.12% | -90.36% | 82.22% | 92.9% | 90.62% | 85.3% | 98.69% | 138.01% | 93.5% | 90.42% | 87.84% | 139.43% | 103.38% | 144.99% | 82.67% | - |
| Net Income Growth % | 84.05% | 182.85% | -23.43% | 139.98% | -65.26% | 141% | 686.87% | -108.87% | 34.44% | 35.57% | 80.1% | -50.5% | 3878.33% | -107.69% | -21.34% | 33.62% | 248.49% | 3.3% | -1116.68% | -112.95% | 20.06% | - |
| Net Income (Continuing) | 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 |
| EPS (Diluted) | 4.15 | 4.77 | 1.78 | 2.47 | 1.07 | 3.08 | 1.28 | -0.22 | 2.49 | 1.88 | 1.48 | 0.82 | 1.88 | -0.05 | 0.71 | 0.99 | 0.74 | -0.50 | -0.53 | -0.06 | 0.44 | 0.37 |
| EPS Growth % | 92.63% | 167.98% | -27.94% | 130.84% | -65.26% | 140.63% | 681.82% | -108.84% | 32.45% | 27.03% | 80.49% | -56.38% | 3845.02% | -107.07% | -28.28% | 33.78% | 248% | 5.66% | -833.1% | -112.91% | 18.92% | - |
| EPS (Basic) | - | 4.77 | 1.78 | 2.47 | 1.07 | 3.08 | 1.28 | -0.22 | 2.49 | 1.88 | 1.48 | 0.82 | 1.88 | -0.05 | 0.71 | 0.99 | 0.74 | -0.50 | -0.53 | -0.06 | 0.44 | 0.37 |
| Diluted Shares Outstanding | 39.82M | 38.71M | 36.74M | 34.47M | 33.31M | 33.21M | 33.18M | 32.87M | 32.81M | 32.27M | 30.27M | 30.27M | 26.67M | 26.48M | 24.19M | 22.08M | 22.08M | 22.08M | 21.55M | 16.56M | 16.56M | 16.39M |
Quick answers to the most common questions about buying GAIN stock.
For fiscal year 2026, Gladstone Investment Corp. (GAIN) reported total revenue of $30.5M.
Gladstone Investment Corp. (GAIN) is profitable, generating $184.8M in net income for the fiscal year ending 2026 with a net profit margin of 606.5%.
Gladstone Investment Corp. (GAIN) reported an operating income of $225.8M, resulting in an operating profit margin of 741.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Gladstone Investment Corp. (GAIN) generated $13.9M in gross profit for the year, representing a gross profit margin of 45.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Lumpy exit-driven earnings
Metrics are mathematically derived from official filings.
NII Stalls Amid Shrinking Portfolio
Net interest income declined 10.7% year-over-year to $13.0M in 2026Q2, reflecting lower deployed capital and a contracting yield environment, according to quarterly financial statements.
The sequential decline in NII from $14.1M in 2025Q3 to $13.0M by 2026Q2 suggests a shrinking interest-earning asset base, likely due to repayments and exits outpacing new originations. This trend, if sustained, could pressure dividend coverage, as interest income forms the stable baseline of GAIN's earnings. Investors should monitor deployment activity and portfolio yield for signs of stabilization.
NIM Compression Signals Rate Headwinds
Net interest margin fell from 1.6% in 2025Q3 to 1.0% in 2026Q4, a 37.5% decline, indicating rising funding costs or lower asset yields, as reported in financial disclosures.
The steady erosion of NIM from 1.6% to 1.0% over five quarters suggests that GAIN's floating-rate assets are repricing downward faster than its funding costs, or that the portfolio mix is shifting toward lower-yielding investments. This compression, if it persists, could reduce the spread between investment income and borrowing costs, directly impacting net investment income. The trend warrants close monitoring, especially in a stable or falling rate environment.
Efficiency Ratio Volatile, Opex Unpredictable
GAIN's efficiency ratio swung from -6.7% in 2025Q3 to 108.4% in 2026Q3, reflecting extreme volatility in non-interest income and expenses, based on reported quarterly data.
The efficiency ratio, defined as non-interest expense divided by total revenue, is highly erratic due to the lumpy nature of realized gains and losses on investments. In quarters with large gains, the ratio turns negative, while in others it spikes above 100%, indicating that operating expenses are not well correlated with revenue. This volatility suggests that the external management fee structure, tied to investment income, may not align with the timing of realized gains, creating unpredictable operating leverage.
Provision Reversals Mask Credit Trends
Provision for loan losses swung from a $13.7M charge in 2026Q4 to a $9.9M benefit in 2027Q1, indicating significant credit volatility, as per financial statements.
The large provision charge in 2026Q4, followed by a substantial reversal in 2027Q1, suggests that GAIN's credit quality is highly sensitive to portfolio company performance and valuation changes. The reversal may indicate recoveries or improved outlooks, but the magnitude of swings highlights the inherent risk in the lower middle market. Investors should monitor non-accrual rates and portfolio company EBITDA trends to gauge the sustainability of credit performance.
Fee Income Highly Variable, Exit-Dependent
Non-interest income, primarily from realized gains and dividends, ranged from -$20.4M to $22.7M over the last ten quarters, underscoring its lumpy nature, as reported.
The extreme volatility in non-interest income, which includes gains on equity investments and dividend income, reflects GAIN's buyout-centric model where exits drive outsized returns. In 2026Q2, non-interest income of $13.4M contributed 37% of total revenue, while in 2025Q1 it was a negative $20.4M, dragging total revenue to near zero. This dependency on exit timing makes earnings unpredictable and complicates dividend sustainability, as the base distribution must be covered by net investment income alone.
2026Q4: Peak Earnings, Then Collapse
Net income peaked at $82.4M in 2026Q4, driven by a $93.0M operating income, but fell to zero in 2027Q1, highlighting the non-linear nature of GAIN's earnings, per filings.
The 2026Q4 quarter stands out as a period of exceptional profitability, likely fueled by significant realized gains from portfolio exits. However, the subsequent quarter's zero net income and negative provision suggest that such gains are not recurring and that the portfolio may be facing headwinds. This inflection point underscores the importance of distinguishing between net investment income and total net income, as the latter is heavily influenced by one-time events.
Earnings Quality Questioned by Unrealized Gains
GAIN's reported net margin of 258% is inflated by unrealized appreciation, which may not convert to cash, raising concerns about earnings quality, as per financial statements.
The headline net margin, exceeding 250%, is largely a function of unrealized gains on equity investments, which are subject to market fluctuations and may never be realized. Additionally, the use of PIK income, which is non-cash, can overstate net investment income and dividend coverage. Investors should adjust for these non-cash items to assess the true cash-generating ability of the portfolio. The low cash balance of $1.13M further suggests that reported earnings are not translating into liquidity, warranting a closer look at cash flow sustainability.