Gladstone Capital
GLADNASDAQUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $19.75 Prior regular-session close from the quote source.
- $19.59–$19.74 Regular-session low and high so far today.
- 106.8K Regular-session shares traded · Nov 11, 4:00 PM ET.
- Nov 16 projected Projected for 2026-11-16 from the company’s own results filings (SEC 8-K Item 2.02). The company has not confirmed the date.
- $16.54–$21.73 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own GLAD if its lower-middle-market credit niche keeps producing adequately priced, well-collateralized loans and limited credit losses, allowing investors to collect income while the stock’s discount to book narrows.
GLAD price history
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Investment thesis
What must happen next
GLAD’s niche in established lower-middle-market borrowers that are too small for larger capital markets should keep supplying redeployable loan demand, provided competition does not force weaker structures or lower spreads.StrengtheningMateriality: High
MD&A says GLAD targets U.S. lower-middle-market companies with EBITDA of $3 million to $25 million that are generally too small for the larger capital marketplace. If this holds, the portfolio can keep turning repayments into earning assets; if it breaks, GLAD becomes a runoff credit book with shrinking income power.
Watch: Large private-credit platforms such as Ares, Blackstone Credit, or Blue Owl aggressively enter GLAD’s lower-middle-market niche and compress spreads or covenants.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
MD&A says GLAD targets U.S. lower-middle-market companies with EBITDA of $3 million to $25 million that are generally too small.
Open source ↗GLAD’s insistence on established businesses, sustainable free cash flow, collateral, experienced management, and equity cushion should limit credit losses through a normal cycle.StrengtheningMateriality: High
MD&A states GLAD seeks borrowers with sustainable business free cash flow, adequate collateral, experienced management teams with significant ownership, reasonable capitalization, and an equity cushion. For a BDC trading near book value, credit discipline is the difference between a realizable discount-to-NAV opportunity and a value trap.
Watch: A recession causes portfolio-company EBITDA to fall below debt-service needs before collateral can protect recoveries.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
MD&A states GLAD seeks borrowers with sustainable business free cash flow, adequate collateral, experienced management teams with significant ownership, reasonable.
Open source ↗The mostly variable-rate, interest-paying debt book should convert invested assets into recurring gross investment income, but that mechanism is vulnerable if SOFR falls faster than GLAD can grow assets or earn fees.HoldingMateriality: Medium
MD&A says GLAD’s debt securities generally accrue interest at variable rates, generally based on one-month Term SOFR, and pay interest monthly or at least quarterly. Income resilience supports dividends and the book-value discount; rate-driven revenue erosion would make the low multiple less attractive.
Watch: The Federal Reserve cuts rates enough that one-month Term SOFR resets materially lower across the portfolio.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
MD&A says GLAD’s debt securities generally accrue interest at variable rates, generally based on one-month Term SOFR, and pay interest.
Open source ↗The Gladstone adviser platform and the more flexible 2025 SEC co-investment order should improve GLAD’s ability to source, size, and diversify investments beyond what its balance sheet could do alone.StrengtheningMateriality: Medium
Item 1 says the Adviser and Administrator also serve affiliated public funds, including Gladstone Investment, Gladstone Commercial, Gladstone Land, and Gladstone Alternative. If the platform advantage is real, GLAD can be selective and still grow; if conflicts or allocation issues dominate, shareholders bear external-manager risk without enough sourcing benefit.
Watch: The Adviser allocates the best lower-middle-market credits to affiliated funds instead of GLAD.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Item 1 says the Adviser and Administrator also serve affiliated public funds, including Gladstone Investment, Gladstone Commercial, Gladstone Land, and.
Open source ↗Small equity positions attached to debt deals can create capital gains that supplement coupon income, but this is lumpy upside rather than the core recurring-income engine.StrengtheningMateriality: Medium
Item 1 and MD&A say GLAD expects about 10% of the portfolio at cost to be equity investments made in connection with debt investments. Realized equity gains can lift NAV and earnings, but relying on them to cover weak credit income would make the investment case lower quality.
Watch: The lower-middle-market exit market freezes, preventing equity realizations.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
Item 1 and MD&A say GLAD expects about 10% of the portfolio at cost to be equity investments made in.
Open source ↗
Full investment case & evidence
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Original research
GLAD’s niche in established lower-middle-market borrowers that are too small for larger capital markets should keep supplying redeployable loan demand, provided competition does not force weaker structures or lower spreads. If this holds, the portfolio can keep turning repayments into earning assets; if it breaks, GLAD becomes a runoff credit book with shrinking income power.
GLAD’s insistence on established businesses, sustainable free cash flow, collateral, experienced management, and equity cushion should limit credit losses through a normal cycle. For a BDC trading near book value, credit discipline is the difference between a realizable discount-to-NAV opportunity and a value trap.
The mostly variable-rate, interest-paying debt book should convert invested assets into recurring gross investment income, but that mechanism is vulnerable if SOFR falls faster than GLAD can grow assets or earn fees. Income resilience supports dividends and the book-value discount; rate-driven revenue erosion would make the low multiple less attractive.
The Gladstone adviser platform and the more flexible 2025 SEC co-investment order should improve GLAD’s ability to source, size, and diversify investments beyond what its balance sheet could do alone. If the platform advantage is real, GLAD can be selective and still grow; if conflicts or allocation issues dominate, shareholders bear external-manager risk without enough sourcing benefit.
Small equity positions attached to debt deals can create capital gains that supplement coupon income, but this is lumpy upside rather than the core recurring-income engine. Realized equity gains can lift NAV and earnings, but relying on them to cover weak credit income would make the investment case lower quality.
All standing thesis claims
Original report summary
its lower-middle-market credit niche keeps producing adequately priced, well-collateralized loans and limited credit losses, allowing investors to collect income while the stock’s discount to book narrows.
Bull case and bear case
Bull case and bear case for Gladstone Capital
Where the evidence on Gladstone Capital stands: Holding on the latest evidence (Nov 10, 2026). Of its 5 thesis points, 4 strengthening and 1 holding.
Bull case: what the evidence supports
GLAD’s niche in established lower-middle-market borrowers that are too small for larger capital markets should keep supplying redeployable loan demand, provided competition does not force weaker structures or lower spreads.
GLAD’s insistence on established businesses, sustainable free cash flow, collateral, experienced management, and equity cushion should limit credit losses through a normal cycle.
The mostly variable-rate, interest-paying debt book should convert invested assets into recurring gross investment income, but that mechanism is vulnerable if SOFR falls faster than GLAD can grow assets or earn fees.
The Gladstone adviser platform and the more flexible 2025 SEC co-investment order should improve GLAD’s ability to source, size, and diversify investments beyond what its balance sheet could do alone.
Small equity positions attached to debt deals can create capital gains that supplement coupon income, but this is lumpy upside rather than the core recurring-income engine.
Bear case: what would count against it
Large private-credit platforms such as Ares, Blackstone Credit, or Blue Owl aggressively enter GLAD’s lower-middle-market niche and compress spreads or covenants.
A recession causes portfolio-company EBITDA to fall below debt-service needs before collateral can protect recoveries.
The Federal Reserve cuts rates enough that one-month Term SOFR resets materially lower across the portfolio.
Thesis-Break Engine
What has broken in Gladstone Capital’s thesis
Each break OptimistFi flagged on Gladstone Capital, dated — with what has historically followed the same kind of break across the market, not a forecast for Gladstone Capital.
- CEO / officer changecondition set before this filing
Across all companies, this kind of break has happened 16,849 times before. Those stocks trailed comparable companies by a median of 2% over the next six months, and 38% of them trailed it by 10 points or more.
MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedDirector or principal officer change.
Gladstone Capital filed an SEC 8-K on 2026-10-26: Director or principal officer change. It is a dated development that tests the current thesis.
- MixedDirector or principal officer change.
Gladstone Capital filed an SEC 8-K on 2026-10-01: Director or principal officer change. It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Gladstone Capital filed an SEC 8-K on 2026-08-04: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- Large private-credit platforms such as Ares, Blackstone Credit, or Blue Owl aggressively enter GLAD’s lower-middle-market niche and compress spreads or covenants.
- A recession causes portfolio-company EBITDA to fall below debt-service needs before collateral can protect recoveries.
- The Federal Reserve cuts rates enough that one-month Term SOFR resets materially lower across the portfolio.
- The Adviser allocates the best lower-middle-market credits to affiliated funds instead of GLAD.
- The lower-middle-market exit market freezes, preventing equity realizations.
GLAD news
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Financial statements
GLAD income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.
GLAD: quick answers
- When does Gladstone Capital (GLAD) report earnings next?
- Gladstone Capital's next results are projected for November 16, 2026, from the dates of its own results filings with the SEC. The company has not confirmed the date. It last reported on August 4, 2026. Earnings calendar
- What is GLAD's short interest?
- As of October 30, 2026, 1.0M GLAD shares were sold short, down 0.2% from the count before. At the stock's average daily volume that is 5.4 days to cover. FINRA publishes the count twice a month. GLAD short interest history