Gladstone Capital : Investor Presentation – March 31, 2025

Published: 2025-05-12 15:17:03 ET GLAD

Published on 05/12/2025 at 15:17

Investing Since 2001

NASDAQ: GLAD

(as of 3/31/2025)

Financial Results

Net Investment Income Per Share: $0.50

Net Asset Value Per Share: $21.41 (-$0.10 over prior quarter-end)

LTM ROE: 18.6% per GAAP and 9.8% on net investment income

Monthly dividends per share: $0.165 or annualized dividend yield on NAV of 9.25%

Portfolio

Total investments at fair value of $762.6 million invested in 51 companies

$46 million of fundings in Q2 (2 new portfolio companies) did not offset anticipated exits and prepayments of $81 million from 2 portfolio company exits

Weighted average yield on debt investments of 12.6% down from 13.1% with lower SOFR Rates(1)

71% of portfolio in first-lien loans and 90% in secured loans

Weighted average and median borrower EBITDA of $11.0 million and $9.2 million(2), respectively

Average investment by obligor of $15.5 million or 2% investment portfolio at fair value

Four obligors on non-accrual representing $29.8 million or 4.3% of debt investments (fair value)

Debt & Liquidity

Outstanding debt balance was $280 million; quarter-end debt-to-equity ratio was 0.60x

Current investment capacity: $251 million under undrawn committed bank lines

Recent Events

Declared regular distribution of $0.165/share per month for Apr., May., and Jun. ($0.495 total)

In 2Q25, received ~$42 million repayment from SpaceCo (Karman Aerospace) following the IPO

Completed the bankruptcy restructuring of investment in Eegee's

1 Actual yields earned over the life of investments could be materially different from the yields presented herein.

2 Both exclude certain investments on the watchlist and investments with TTM EBITDA greater than $25 million.

Lending focused on growth-oriented lower middle market businesses

Experienced, long-tenured leadership and investment team

Proprietary sourcing and execution model with high degree of selectivity

Diversified, conservative portfolio with focus on senior secured, first lien loans

Active portfolio management and risk monitoring

Focus on shareholder alignment

Founded in 2001 with the purpose of making loans to lower middle market U.S. businesses, Gladstone Capital's investment team is exclusively focused on this segment of the private capital market

Gladstone Capital is funded through publicly traded common stock (Nasdaq: GLAD) and is leveraged via various senior unsecured note issues and a bank revolving credit facility

Managed by Gladstone Management Corporation, an SEC registered investment adviser managing $4.0+ billion in assets across four publicly traded yield-oriented funds and one newly-formed private interval fund

Target direct originated secured debt investments in growth-oriented companies with revenue visibility and free cash flow to support organic deleveraging and where capital structure flexibility and lender support are valued

Target companies with operating cash flow (EBITDA) of $3-25 million and investments of $8-40 million which are below the investment threshold of most of the large-scale private capital funds

Majority of investments are backed by private equity sponsors (~85% of the portfolio at 3/31/25), which provide governance oversight, strategic sector insight, experience managing leveraged capital structures and access to additional investment capacity to support growth

Leverage experienced origination team to source, structure, undertake "equity level" diligence and pro-actively manage investments via ongoing board level participation to mitigate credit losses

Highly selective screening process where under 5% of deals reviewed ultimately close and all deals require financial maintenance covenants

All investments undergo ongoing senior management review, quarterly third-party expert investment valuations in support of SEC filed financials which are subject to quarterly oversight by Gladstone Capital's audit committee and independent board members

Disclaimer

Gladstone Capital Corporation published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 19:16 UTC.