Revenue volatility remains a primary concern, evidenced by a 20.47% year-over-year decline that highlights the instability of relying on portfolio exits rather than recurring interest income.
| Metric | 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 | 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 % | -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 % | 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 | 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 | 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 | 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 | -24.37M | 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 % | -34.09% | 6.97% | 20.72% | -24.2% | 46.85% | 11.29% | -314.19% | 52.9% | 29.64% | 12.82% | -39.36% | 32.59% | -2639.21% | -26.48% | 21.84% | 18.98% | 432.72% | 540.88% | -293.76% | -83.55% | - |
| Total Revenue | 71.48M | 89.88M | 103.17M | 48.53M | 112.23M | 53.17M | 11.96M | 105.38M | 69.36M | 52.94M | 33.29M | 54.42M | 1.11M | 19.61M | 25.06M | 19.4M | -5.96M | -5.73M | 7.08M | 9.4M | 0 |
| Revenue Growth % | -20.47% | -12.88% | 112.58% | -56.76% | 111.08% | 344.4% | -88.65% | 51.93% | 31.03% | 59% | -38.83% | 4794.06% | -94.33% | -21.76% | 29.15% | 425.79% | -4.02% | -180.83% | -24.65% | - | - |
| Non-Interest Expense | -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 | -296.47% | -4.1% | -6.06% | -5.96% | -2.82% | 11.8% | 127.38% | 16.74% | 6.69% | 8.75% | 12.87% | 1.23% | 32.91% | 6.13% | 9.28% | 11.72% | -52.57% | -6.53% | 4.12% | 16.21% | - |
| Operating Income | 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 % | 315.85% | 72.67% | 82.68% | 73.24% | 91.17% | 79.85% | -60.46% | 77.43% | 87.49% | 84.56% | 74.65% | 92.27% | -119.51% | 88.13% | 87.65% | 84.72% | 185.88% | 199.95% | -13.28% | 77.32% | - |
| 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 | 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 % | 258.46% | 72.67% | 82.68% | 73.24% | 91.17% | 79.85% | -60.46% | 77.43% | 87.49% | 84.56% | 74.65% | 92.27% | -119.51% | 88.13% | 87.65% | 84.72% | 185.88% | 199.95% | -13.28% | 77.32% | - |
| Income Tax | 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% |
| Net Income | 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 % | 258.46% | 72.67% | 82.68% | 73.24% | 91.17% | 79.85% | -60.46% | 77.43% | 87.49% | 84.56% | 74.65% | 92.27% | -119.51% | 88.13% | 87.65% | 84.72% | 185.88% | 199.95% | -13.28% | 77.32% | - |
| Net Income Growth % | 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) | 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) | 4.77 | 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 % | 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 | 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 |
Lumpy Exit-Driven Revenue
As reported in recent financial filings, GAINI experienced a 20.47% year-over-year revenue decline, highlighting the inherent instability of a business model heavily reliant on the timing of portfolio company exits rather than consistent, recurring interest income streams from its lower middle market debt investments.
The revenue trajectory appears highly sensitive to M&A cycles, which complicates the assessment of organic growth durability. Investors should monitor whether the recent contraction reflects a strategic pause in exit activity or a broader deterioration in the underlying portfolio company performance.
Based on the provided income statement data, the extreme variance between gross and net margins suggests that GAINI's profitability is driven more by non-cash unrealized appreciation of equity holdings than by core operational efficiency, a common characteristic of BDCs with significant private equity-style investment mandates.
The reported net margins, which have fluctuated significantly across the observed quarters, indicate that bottom-line results are susceptible to fair-value adjustments. This volatility warrants caution, as it may obscure the true cash-generating capacity of the firm's debt and equity portfolio.
According to the company's quarterly income statements, the significant disconnect between net income and operational cash flow suggests that reported EPS is heavily influenced by non-operating valuation changes, necessitating a focus on core net investment income to gauge the sustainability of the firm's dividend distributions.
The absence of stock-based compensation is a positive indicator of alignment, yet the reliance on unrealized gains to bolster net income creates a misleading picture of recurring profitability. Analysts should adjust for these non-cash items to determine if the current dividend payout is adequately covered by cash-based investment income.
As highlighted by the recent 20.47% revenue contraction, the short-seller thesis likely centers on the sustainability of supplemental dividends, which appear contingent on a robust M&A environment that may not persist in the face of current macroeconomic headwinds and potential valuation compression in the LMM.
The reliance on successful exits to fund supplemental payouts introduces a binary risk profile that traditional income investors may overlook. If the exit velocity slows, the firm may face pressure to maintain its dividend levels, potentially forcing a reliance on less favorable capital allocation strategies.
Quick answers to the most common questions about buying GAINI stock.
Gladstone Investment Corporation (GAINI) is profitable, generating $184.8M in net income for the fiscal year ending 2026 with a net profit margin of 258.5%.
Gladstone Investment Corporation (GAINI) reported an operating income of $225.8M, resulting in an operating profit margin of 315.8%. 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 19.4%. This demonstrates the company's core pricing power and production efficiency.