Operating cash flow generation appears structurally weak relative to reported profits, with a four-quarter average OCF/Net Income ratio of just 0.35, raising questions about the cash backing for distributions and investment activity.
Gladstone Investment Corporation (GAINI) 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 | -122.55M | 3.88M | 0 | 0 | 12.22M | 0 | 0 | -51.08M | 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 | -56.34M | -328.83M | 43.25M | -8.99M | -54.54M | -34.73M | 8.35M | 110.82M | -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 | -109.96M | 0 | -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 | -109.07M | 0 | -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 | -889K | 0 | 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 | -109.96M | 0 | -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 | -7.25M | 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 | -7.25M | 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 | 69.99M | -333K | 0 | 0 | -385K | 0 | 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 | 1 | 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 GAINI stock.
Gladstone Investment Corporation (GAINI) generated $-101.6M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Gladstone Investment Corporation (GAINI) reported negative free cash flow of $101.6M in 2026, indicating capital requirements exceeded cash from operations.
Gladstone Investment Corporation (GAINI) 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 Corporation (GAINI) 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
Mark-to-market earnings volatility
Metrics are mathematically derived from official filings.
Organic Capital Generation Appears Inadequate
The cash flow from operations consistently fails to cover net income, with the OCF/NI ratio averaging just 0.35 over the past four quarters, suggesting the company's earnings are heavily driven by non-cash valuation gains rather than distributable cash flow.
For a BDC, a low and volatile OCF/NI ratio is a direct indicator that net income is inflated by unrealized gains and losses on the equity portfolio. GAINI's ratio turned negative in 2027Q1 (-0.68) and 2026Q3 (-2.06), meaning operating cash flows were insufficient to even cover a fraction of reported earnings. This pattern implies the base monthly dividend may be sustained by portfolio realizations or credit facility draws rather than consistent operating cash generation.
Volatile Securities Purchases Signal Lumpy Deployment
GAINI's investing cash flows reveal a highly uneven deployment pace, with securities purchases surging to $187.1M in 2025Q3 but collapsing to just $600K in 2027Q1, indicating significant timing dependency on attractive LMM buyout opportunities.
The investment activity pattern is inconsistent with a steady-state deployment model. The massive $187.1M purchase in 2025Q3, followed by a net sale in the next quarter, suggests a large, concentrated investment that may have been partially offset by realizations. The near cessation of purchases in the most recent quarter, combined with a $10.5M loan loss provision, could indicate a period of portfolio triage rather than active growth, where management is prioritizing credit monitoring over new originations.
Loan Loss Reserves Swing Drains Cash Flow
The provision for loan losses exhibited extreme volatility, swinging from a $483K reserve build in 2026Q1 to a $13.7M cash charge in 2026Q4, before reversing to a $10.5M benefit in 2027Q1, creating significant cash flow unpredictability.
The erratic provisioning suggests management's credit outlook for the LMM portfolio is shifting rapidly. The large $13.7M outflow in 2026Q4, representing a material cash drain, was immediately followed by a $10.5M inflow via a reserve release, which may indicate the initial charge was overly aggressive or that specific credit situations resolved faster than anticipated. This whipsaw effect makes the cash flow statement less useful for forecasting and underscores the inherent volatility in a loan book exposed to cyclical sectors.
Distribution Payments Show Elevated Intensity
Quarterly dividend payments reached a high of $38.1M in 2026Q3, significantly exceeding the reported net income of $65.9M for that period and representing a substantial portion of operating cash flows, which may stress liquidity if sustained.
The $38.1M distribution in 2026Q3 was more than triple the typical quarterly payout of ~$9M seen in other periods, suggesting a special or supplemental dividend likely funded by realized gains from the equity portfolio. While this aligns with the 'Buyout BDC' model, the sustainability of such variable payouts is entirely dependent on exit activity. The base monthly distribution appears manageable relative to average operating cash flow, but the total payout intensity warrants monitoring for alignment with core NII generation.
Cash Flow Statement Obscures True Liquidity
The cash flow statement fails to capture the primary sources of BDC liquidity, such as undrawn credit facility capacity and the timing of unrealized equity gains that support borrowing bases, which are critical for funding distributions and new investments.
GAINI's financing activities show only minor, oscillating long-term debt issuances and repayments of ±$1M per quarter, which is inconsistent with funding the multi-million dollar investment swings seen in investing activities. This discrepancy suggests the company is heavily reliant on a revolving credit facility or other off-balance-sheet liquidity to manage its cash flow. Furthermore, the $0 in buybacks and the financing gap during high-distribution quarters indicate that net asset value changes, rather than cash flow from operations, are the ultimate backstop for the capital return program.