Core earning power is eroding, as net interest income has fallen 20% over eight quarters while the net interest margin has contracted 44% to 0.9%, and non-cash volatility makes reported net margins unreliable indicators of sustainable performance.
Gladstone Investment Corporation (GAINI) 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 | -1.93M | 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 | 13.68M | -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 % | 20.94% | -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 | 65.32M | 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 % | -23.31% | -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 | -71.82% | -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 % | 174.77% | 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 % | 252.8% | 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 % | 252.8% | 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 GAINI stock.
For fiscal year 2026, Gladstone Investment Corporation (GAINI) reported total revenue of $30.5M.
Gladstone Investment Corporation (GAINI) is profitable, generating $184.8M in net income for the fiscal year ending 2026 with a net profit margin of 606.5%.
Gladstone Investment Corporation (GAINI) 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 Corporation (GAINI) 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
Mark-to-market earnings volatility
Metrics are mathematically derived from official filings.
Net Interest Income in Steady Decline
Net interest income has fallen for eight consecutive quarters, from $14.9M in 2024Q4 to $11.9M in 2027Q1, representing a cumulative decline of approximately 20% as per the reported financial data.
This persistent NII erosion suggests the core income engine from GAINI's debt portfolio is under significant pressure. The trend may indicate a combination of non-accruals, lower-yielding new deployments, or paydowns of higher-yielding legacy assets. Given the company's focus on lower middle market buyouts, this NII contraction warrants investigation into the health and cash-flow generation capacity of the underlying portfolio companies.
NIM Compression Erodes Core Earning Power
The net interest margin has contracted sharply from 1.6% in 2024Q4 to 0.9% in 2027Q1, a 44% compression that has significantly narrowed the spread between asset yields and funding costs.
This sustained NIM decline is a critical negative for a yield-based business model, directly reducing the interest income generated on the investment portfolio. The compression likely reflects competitive pressures in the LMM deal market and a less favorable rate environment for floating-rate assets, which has outpaced any benefit from lower funding costs. A stabilization of NIM is a prerequisite for any recovery in core earnings power.
Non-Interest Income Volatility Masks Core Earnings
Non-interest income swung dramatically from a loss of $20.4M in 2025Q1 to a gain of $887K in 2025Q2, illustrating the extreme lumpiness in realized gains from the equity portfolio that dominates total revenue.
GAINI's total revenue is heavily reliant on the timing of equity realizations, which are inherently non-recurring and cyclical. The negative non-interest income periods likely reflect net unrealized depreciation or realized losses on the equity holdings, which can completely offset stable interest income. This structural earnings volatility is a key risk for investors seeking predictable income, as a single bad quarter in the exit environment can overwhelm the performance of the core lending business.
Provisioning Swing Signals Portfolio Stress
The provision for loan losses swung from a $483K reserve build in 2026Q1 to a $13.7M expense in 2026Q4, before reversing to a $10.5M benefit in 2027Q1, indicating highly erratic credit assessments.
The large Q4 2026 provision suggests management identified material deterioration in a specific portfolio company or sector, requiring a significant reserve build. The subsequent large negative provision (benefit) in Q1 2027 is unusual and may indicate a reversal of previously reserved amounts, potentially due to a recovery or an asset sale. This volatility in credit costs introduces noise into reported earnings and makes it difficult to assess the underlying, run-rate health of the loan book.
Earnings Quality Threatened by Non-Cash Gains
GAINI's net income is overwhelmingly driven by non-cash mark-to-market gains, with net margins exceeding 600% in recent quarters, which suggests core net investment income may be insufficient to cover distributions.
The extreme divergence between the near-zero NII growth and massive net income swings indicates that reported earnings are not a reliable proxy for cash generation or distributable income. For a BDC, sustainability is measured by core net investment income covering dividends; the reliance on unrealized equity gains to prop up earnings represents a significant risk if the private equity exit market deteriorates. Investors should discount the headline EPS figures and focus on the core NII trend, which is in secular decline.