Gladstone Capital Corp (NASDAQ: GLAD) is a business development company (BDC) that lends to and invests in small and mid-sized private companies in the United States. It makes money primarily through interest income on loans, generating $87.3 million in interest income for the fiscal year ended September 30, 2025, down from $93.3 million in FY2024. The portfolio spans secured first lien debt, secured second lien debt, unsecured debt, preferred equity, and common equity across sectors including beverage, food and tobacco, healthcare, aerospace and defense, diversified manufacturing, oil and gas, cargo transportation, and machinery. Gladstone Capital is externally managed by Gladstone Management Corporation, which charges a base management fee of 1.75% annually on average total assets, plus a loan servicing fee and incentive fee, with credits applied against certain fees. Net investment income for FY2025 was $45.2 million. The company is structured as a regulated investment company and operates as a BDC under the Investment Company Act of 1940.

Revenue model

Interest income on floating-rate and fixed-rate loans to portfolio companies is the primary revenue source, totaling $87.3 million in FY2025. Other income, including fees, contributed $1.8 million in FY2025. The external manager, Gladstone Management Corporation, earns a 1.75% annual base management fee on average total assets, a loan servicing fee, and a performance-based incentive fee, with non-contractual credits reducing net fees paid.

Products and services

Secured first lien term loans, secured first lien lines of credit, delayed draw term loans, secured second lien term loans, unsecured debt, preferred equity, and common equity investments in private companies. Loan structures include both floating-rate (SOFR-based) and fixed-rate instruments, with some positions carrying PIK (payment-in-kind) components.

Customers and end markets

Portfolio companies are small and mid-sized private U.S. businesses across sectors including beverage, food and tobacco (Wings 'N More, Eegee's, Salt & Straw, Café Zupas), healthcare and childcare (Turn Key Health Clinics, Giving Home Health Care, Altior Healthcare), aerospace and defense (Antenna Research Associates, Ohio Armor Holdings), diversified manufacturing (NeoGraf Solutions, OCI, Torrent Photonics), cargo transportation (RPM Freight Systems), machinery (Arc Drilling Holdings), oil and gas (FES Resources Holdings), and telecommunications (B+T Group Acquisition).

Value-chain role

Direct lender and equity co-investor to private companies; sits between institutional capital markets and private borrowers that lack access to public debt markets. Gladstone Business Loan, LLC, a subsidiary, serves as the borrowing vehicle under a credit facility with KeyBank National Association as administrative agent, with Gladstone Management Corporation acting as servicer.

Geographic exposure

United States. The filing excerpts do not specify a breakdown by state or region.

Source: SEC 10-K, filed 2025-11-17

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